Oracle (ORCL) Plunges 4.46% as $12B CapEx Surge and AI Sector Slowdown Fears Weigh

Oracle Corp. shares fell more than 4.46% in pre-market trading on December 15, 2025, signaling renewed investor caution amid mixed earnings and aggressive capital spending. The decline came as broader tech benchmarks also faltered, reflecting sector-wide jitters.

The stock’s pre-market slide followed a challenging earnings report, where Oracle topped Wall Street’s EPS estimates but missed revenue targets.

The company’s capital expenditures surged to $12 billion in the quarter, a 200% increase from the prior year and 50% above expectations. Analysts highlighted concerns over the sustainability of such high spending, particularly as Oracle funds its AI and cloud infrastructure push through expensive debt issuance.

Market sentiment was further pressured by Broadcom’s earnings release, which revealed contracting margins in its AI division. The report amplified fears of a potential AI sector slowdown, with investors questioning whether current valuations justify the rapid capital outlays. Oracle’s debt-heavy strategy has drawn scrutiny, as any dip in AI demand could strain its balance sheet and profitability.

The selloff hit Oracle founder Larry Ellison’s net worth, wiping out $25 billion in a single day. The drop underscores the risks of concentrated wealth in tech stocks, especially for companies pivoting to high-cost, long-term growth areas like AI. While Oracle’s cloud revenue growth remains robust, the market appears to be pricing in near-term uncertainty amid escalating costs and competitive pressures.