Oracle (ORCL) Shares Plunge 4.47% on Mixed Earnings, AI Valuation Fears

Oracle shares fell 4.47% in pre-market trading on December 15, 2025, signaling heightened investor caution ahead of the opening bell. The decline came amid broader market volatility, with tech and AI sectors under pressure.

The selloff followed Oracle’s mixed quarterly results, where earnings beat estimates but revenue fell short of expectations. The company’s capital expenditures surged to $12 billion, more than double the prior year’s figure, raising concerns about the sustainability of its aggressive AI investments. Analysts noted that Oracle’s heavy spending on data centers and infrastructure, while aligned with long-term growth, has yet to translate into immediate revenue gains, dampening investor confidence.

Broader market anxiety was amplified by Broadcom’s earnings report, which highlighted contracting margins in its AI business. This sparked fears of an overvalued AI sector, with investors reevaluating risks tied to speculative tech bets. Larry Ellison’s net worth reportedly dropped by $25 billion in a single day, reflecting Oracle’s market value contraction and underscoring the vulnerability of concentrated wealth in tech stocks.

With tech stocks facing renewed scrutiny over profitability and valuation, Oracle’s pre-market decline underscores a broader shift in investor sentiment. The company’s ability to balance capital intensity with revenue growth will remain a key focus as markets reassess the AI-driven growth narrative.