Oracle (ORCL) Plunges 6.58% as Debt-Fueled AI Investments Spur Market Reassessment

Oracle shares plunged 6.5801% in pre-market trading on Nov. 21, 2025, as investor sentiment shifted amid mounting concerns over debt-fueled AI investments. The selloff follows a broader market reassessment of AI sector valuations, with Oracle and peers like Meta Platforms facing heightened scrutiny over their reliance on leveraged funding for next-generation technologies.

Recent reports highlight Oracle’s aggressive capital allocation toward AI infrastructure, raising alarms among investors who fear overextension. A $300 billion rumored partnership with OpenAI had previously driven the stock to record highs, but recent volatility suggests growing skepticism about the sustainability of AI-driven growth narratives. Analysts note that while AI spending remains robust, the market is increasingly demanding clearer ROI timelines.

Oracle’s decline mirrors broader tech sector jitters, with rivals such as Meta experiencing similar double-digit declines since late October. However, the stock remains below its recent highs, reflecting cautious positioning ahead of potential earnings reports and strategic clarity from key players in the AI ecosystem.

Backtest assumptions indicate a potential reversal scenario if Oracle stabilizes above its 50-day moving average, historically a key support level. A breach of $150 could trigger further downside, while a rebound above $200 might signal renewed institutional confidence in its AI roadmap. Position sizing and stop-loss placement remain critical for managing short-term volatility.