Oracle Shares Plunge 3.88% as Margin Pressures Offset AI Infrastructure Gains

Oracle shares plunged 3.8789% in pre-market trading on November 13, 2025, extending a multi-month decline that has erased over 30% of market value since late September. The selloff reflects mounting concerns about margin pressures and capital expenditures, despite the company’s pivotal role in the AI infrastructure boom.

Analysts remain divided on the stock’s trajectory. Mizuho’s Siti Panigrahi maintained a "Buy" rating with a $400 price target, highlighting Oracle’s potential to exceed expectations when reporting Q2 results in December. The analyst cited a tripling of AI-related contract backlogs to $455 billion earlier this year as evidence of sustained demand for cloud-based server capacity. Phillip Securities echoed optimism but stressed the need for accelerated execution on large-scale AI projects to restore investor confidence.

Twenty-five of 37 tracked analysts still rate Oracle a "Buy," citing robust AI pipelines and long-term revenue visibility. However, lingering skepticism about profit margins and infrastructure costs continues to weigh on sentiment. Recent momentum from hyperscaler and enterprise partnerships is seen as a critical factor in sustaining infrastructure and subscription revenue growth.

Backtest scenarios suggest a strategic focus on Oracle’s AI-driven infrastructure could yield significant upside if the company meets projected execution timelines. A $400 price target implies a 75% rally from current levels, contingent on maintaining momentum in enterprise AI adoption and cloud capacity utilization.