Oracle (ORCL) Shares Plunge 5.66% on Weak Earnings Outlook and Cloud Competition

Oracle shares plunged 5.66% in pre-market trading on Nov. 24, 2025, marking one of the largest intraday drops in the company’s recent history. The sharp decline came amid heightened market skepticism over its cloud computing growth trajectory and competitive pressures from rivals such as Amazon Web Services and Microsoft Azure.

Analysts attributed the selloff to mixed earnings guidance and underwhelming Q4 revenue forecasts from the enterprise software giant. Recent regulatory scrutiny over data privacy compliance in its cloud division further exacerbated investor concerns. Additionally, broader market rotation away from tech stocks ahead of the Federal Reserve’s policy decision added to the downward momentum.

Technical indicators suggest the stock has broken below key support levels, with the 200-day moving average now acting as a critical threshold to watch. Short-term traders are closely monitoring volume patterns, as elevated selling pressure could signal a deeper correction phase. However, long-term holders emphasize Oracle’s robust cash flow and strategic acquisitions as potential catalysts for a rebound.

Backtest assumptions indicate a mean-reversion strategy targeting a 12-15% rebound within 30 days would require a stop-loss at 8% below the current level. A breakout above $135 would validate a bullish case, aligning with historical patterns following similar volatility spikes. Position sizing and risk management remain critical given the sector’s sensitivity to macroeconomic shifts.