Oracle (NYSE: ORCL) shares plunge 4.47% on mixed Q2 earnings and soaring capital expenditures

Oracle (NYSE: ORCL) shares plunged 4.4657% in pre-market trading on Dec. 15, 2025, extending a broader selloff in tech stocks amid investor concerns over the sustainability of its aggressive AI investments and capital expenditures.

The decline follows Oracle’s mixed Q2 earnings report, where it exceeded Wall Street’s EPS estimates but fell short of revenue expectations. The company’s capital expenditures surged to $12 billion for the quarter, a 200% increase from the prior year and 50% above forecasts, raising questions about the long-term viability of its costly AI infrastructure expansion.

Analysts highlighted that Oracle’s reliance on high-interest debt to fund these projects has intensified worries about financial risk, particularly if AI demand slows.

Broader market jitters were amplified by Broadcom’s earnings report, which revealed contracting margins in its AI business. The dual blow from Oracle and Broadcom’s results reignited fears of an overvalued AI sector, contributing to a wider tech selloff. Oracle’s stock had previously soared 80% year-to-date, but recent volatility underscores the sector’s sensitivity to earnings guidance and macroeconomic shifts.

Investors are now scrutinizing Oracle’s balance sheet, with a focus on its debt-to-equity ratio and projected cash flow from AI-related revenue. The company has yet to provide a concrete roadmap for monetizing its AI infrastructure, and market participants are watching for signs of overextension. This uncertainty, combined with broader macroeconomic headwinds, suggests that Oracle’s stock could remain volatile in the near term, with the potential for further corrections if sentiment turns bearish.