Oracle Stock Dips 11% on AI Spending Concerns, Weighing on Ellison's Wealth

===========================CRITICAL HARD RULES (QWEN-SAFE)===========================

1. You MUST output the FULL ORIGINAL ARTICLE.
2. The ONLY allowed change is inserting ONE tag.
3. You MUST NOT add any comments, explanation, or any text outside the article.
4. You MUST NOT rewrite, reorder, delete, normalize, or alter ANY character.
5. You MUST NOT output the tag alone.
6. You MUST NOT place the tag at the beginning or at the end of the article.
7. The tag MUST be inserted inside a MIDDLE PARAGRAPH.

A “paragraph” = a block of text separated by one or more blank lines.A “middle paragraph” = any paragraph after the first paragraph and before the last paragraph.

If you break ANY rule → your output is INVALID.

===========================THE TAG (INSERT EXACTLY ONCE)===========================

Insert this exact structure:

Notes:• Replace MODEL_GENERATED_VALUE with the generated ticker.• Replace CATALOG_ID_VALUE with the matched catalog id.• Replace TIME_RANGE_VALUE with exactly one of: 0, 1, 2, 3, or 4.• DO NOT output any parentheses or explanations inside the tag.

The tag MUST be inserted at a natural boundary:• end of a sentence• or end of a line

Do NOT change any surrounding characters.

===========================HOW TO GENERATE THE ATTRIBUTES===========================

1. code (MODEL_GENERATED_VALUE)

Pick the single most relevant ticker found in the article.
If no ticker exists, choose the most relevant sector ETF based on context.If still unclear, default to SPY.

1.1 Crypto Rule

If the most relevant asset is a cryptocurrency:• Convert it to its USDT trading pair (e.g. BTC → BTCUSDT).• If the article uses the full name (e.g., “Bitcoin”), map it to the standard ticker first (Bitcoin → BTC → BTCUSDT).

This rule applies ONLY to crypto assets.Non-crypto tickers MUST stay unchanged.

2. id (CATALOG_ID_VALUE)

NEWS_BACKTEST may be:• a Python dict• a JSON string

Parse it if needed.

Choose ONE id from:data.newsBacktest[0].items[*].id

Selection MUST be based on semantic matching between:• ARTICLE text• items[*].details

If no strong match:• choose the item describing trend/momentum
If still unclear:• choose the FIRST item in the catalog

3. range (TIME_RANGE_VALUE)

Use a 5-year backtest window (timeRangeId="3") as the default.
Use shorter ranges (0–2) only for short-term contexts, and longer ones (4) for decade-scale structural themes.

===========================MANDATORY OUTPUT FORMAT===========================

You MUST output:✔ the original article✔ with the inserted tag inside a middle paragraph
✘ no explanation
✘ no extra text

===========================INPUTS===========================

CATALOG_JSON:{"status_code":0,"data":{"newsBacktest":[{"extension":"/","items":[{"id":"strategy_001","name":"Absolute Momentum","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: ROC(126) crosses above 0 at close. Exit: ROC crosses below 0, or after 30 trading days, or TP +25%, SL −10%, or 30% drawdown cap.","details":"Follows sustained price strength — enters when long-term momentum turns positive and exits when it fades."},{"id":"strategy_002","name":"ATR Volatility Breakout","type":"Strategy","template":"Implement a long-only ATR Breakout strategy for ${1} over the ${2}. Entry: Go long when today's True Range exceeds 1.5× the 20-day ATR and the close breaks above the previous 20-day high. Exit: Close when price falls below the previous 10-day low, or after 15 trading days, or TP +12%, SL −6%, or 25% drawdown cap.","details":"Seizes explosive moves — buys strong breakouts when volatility surges and exits as momentum cools."},{"id":"strategy_003","name":"Bollinger Bands","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: Close crosses above the lower Bollinger Band (20, 2). Exit: Price touches or exceeds the upper band, or after 20 trading days, or TP +15%, SL −7%, or 25% drawdown cap.","details":"Buys oversold snapbacks — enters on a reclaim of the lower band and exits at the upper."},{"id":"strategy_004","name":"Donchian Breakout","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: Close > 55-day high. Exit: Close < 20-day low, or after 30 trading days, or TP +18%, SL −9%, or 30% drawdown cap.","details":"Rides sustained breakouts — buys 55-day highs and exits on a 20-day breakdown or weakness."},{"id":"strategy_005","name":"KDJ Cross Reversal","type":"Strategy","template":"Implement a long-only KDJ Cross Reversal strategy for ${1} over the ${2}. Entry: Go long when %K(9,3,3) crosses above %D(9,3,3) and both are below 30 at close. Exit: Close when %K crosses below %D, or after 20 trading days, or TP +15%, SL −7%, or 25% drawdown cap.","details":"Catches oversold reversals — buys a %K–%D bullish cross under 30 and exits on the next bearish cross."},{"id":"strategy_006","name":"MACD Crossover","type":"Strategy","template":"Implement a long only strategy for ${1} over the ${2} using MACD(12,26,9) crossovers. Entry: Go long after bullish crossover confirmed at close. Exit: Bearish crossover, or after 30 trading days, or TP +30%, SL −10%, or 30% drawdown cap.","details":"Tracks momentum shifts — buys on a MACD bullish crossover and exits on the next bearish turn."},{"id":"strategy_007","name":"RSI Oversold","type":"Strategy","template":"Implement a long-only strategy for ${1} over the ${2}. Entry: RSI crosses above 30 at close. Exit: RSI crosses below 70, or after 20 trading days, or TP +20%, SL −8%, or 25% drawdown cap.","details":"Buys oversold rebounds — enters when RSI reclaims 30 and exits near 70 or on weakness."},{"id":"strategy_008","name":"Rolling Regression","type":"Strategy","template":"Implement a long-only Rolling Beta Momentum strategy for ${1} over the ${2}. Entry: The regression beta of past 60 daily returns on time (trend slope) > 0. Exit: Beta < 0, or after 20 trading days, or TP +20%, SL −8%.","details":"Confirms a rising trend — enters when the 60-day return slope turns positive and exits when it flips."},{"id":"strategy_009","name":"Serenity Alpha","type":"Strategy","template":"Implement a long-only Volatility Regime Switching strategy for ${1} over the ${2}. Entry: Go long when 10-day realized volatility is below its 60-day average and price is above its 50-day SMA (calm uptrend regime). Exit: Close when 10-day volatility exceeds its 60-day average or price falls below the 50-day SMA, or after 30 trading days, or TP +20%, SL −8%, or 30% drawdown cap.","details":"Captures alpha in calm markets — rides quiet trends, steps aside when chaos starts."},{"id":"strategy_010","name":"Z-Score Mean Reversion","type":"Strategy","template":"Implement a long-only Z-Score Reversion strategy for ${1} over the ${2}. Entry: Go long when Z = (Close - SMA(20)) / StdDev(20) ≤ -2 at close. Exit: When Z ≥ 0, or after 10 trading days, or TP +8%, SL −4%, or 25% drawdown cap.","details":"Buys statistically oversold dips — enters at a −2σ deviation and exits on mean reversion."},{"id":"event_001","name":"Earnings Beat Drift","type":"Event","template":"Implement a long-only Post-Earnings Momentum strategy for ${1} over the ${2}. Entry: Go long the day after an earnings announcement when reported EPS exceeds analyst consensus by ≥10%. Exit: After 20 trading days, or TP +10%, SL −5%, or 30% drawdown cap.","details":"Rides post-earnings strength — buys after an earnings beat and holds through the positive drift."},{"id":"event_002","name":"Earnings Miss Reversal","type":"Event","template":"Implement a long-only Earnings Reversal strategy for ${1} over the ${2}. Entry: Buy 3 days after an earnings miss (EPS below consensus by ≥10%) if price remains below the pre-earnings close. Exit: After 10 trading days, or TP +8%, SL −4%, or 25% drawdown cap.","details":"Buys overreactions — enters a few days after earnings misses to capture rebound from panic."},{"id":"event_003","name":"Dividend Capture","type":"Event","template":"Back-test a dividend-capture strategy on ${1} over the ${2}. Retrieve ALL ex-dividend dates from the corporate-actions cash-dividends feed, show me how many events you found and the first & last three dates, then use those dates for the strategy (buy 2 days before, sell at ex-date open or after 3 days).","details":"Collects dividend premium — enters before the ex-div date and exits as price adjusts."}],"id":2417,"data_id":700,"data_code":"newsBacktest","priority":50,"key":"newsBacktest"}]},"status_msg":"ok"}
ARTICLE:Larry Ellison's net worth dropped by $24.9 billion following a sharp decline in Oracle Corp. shares. The stock fell 11% after the company [reported earnings](https://www.bloomberg.com/news/articles/2025-12-11/larry-ellison-s-wealth-plunges-25-billion-after-oracle-orcl-slump) that revealed a significant increase in capital expenditures for AI data centers. This decline pushed Ellison from second to third place on Bloomberg's list of the world's richest people [according to the report](https://www.theguardian.com/business/2025/dec/11/disappointing-oracle-results-knock-70bn-off-value-amid-ai-bubble-fears).
The drop in Oracle's stock price followed concerns among investors that the company's aggressive spending on AI infrastructure was not translating into revenue as quickly as expected [as market analysis shows](https://finance.yahoo.com/news/larry-ellison-oracle-plunges-ai-093821900.html). Oracle now anticipates capital expenditures to reach about $50 billion in fiscal 2026, [a $15 billion increase](https://www.benzinga.com/markets/tech/25/12/49345650/oracle-q2-shock-wipes-33-billion-from-larry-ellisons-fortune-puts-paramounts-warner-bid-in-spotlight?amp;utm_campaign=partner_feed&utm_medium=referral) from earlier forecasts.

The company also reported weaker-than-expected growth in cloud computing revenue and its infrastructure business.

The decline in Ellison's wealth comes at a critical time. He has pledged to backstop his son David's $108 billion hostile bid for Warner Bros. Discovery Inc. The bid, which includes $30 per share in all-cash, is backed by the Ellison family and RedBird Capital Partners. Despite this commitment, Ellison's ability to provide immediate liquidity may be limited due to his collateralization of Oracle shares and investments in less liquid assets.

Market Reactions and Analyst Concerns

Oracle's stock has lost nearly a third of its value since September when it announced a $300 billion deal to supply computing power to OpenAI. The market has grown increasingly wary of AI-related investments, with Oracle serving as a bellwether for concerns over debt-funded data center expansions according to financial analysts. Oracle's credit default swaps have spiked to their highest levels in three years, signaling heightened investor concerns about the company's financial health.

The decline in Oracle's stock also knocked over $70 billion off the company's market value. This loss has been attributed to both the weaker-than-expected earnings and the rising fears of an AI stock bubble. Analysts have pointed out that Oracle is already managing a growing debt pile, with long-term debt surging 25% over the past year to $99.9 billion as per financial reports.

Financial Implications and Future Challenges

Larry Ellison holds approximately 41% of Oracle's shares, with his stake valued at $202.8 billion despite the recent decline. He also has around $34.8 billion in cash and equivalents, mostly from historical Oracle stock sales. However, some of that liquidity is tied up in real estate and art, complicating any immediate financial maneuvers.

The financial pressures on Ellison are compounded by the fact that he has pledged about 30% of his Oracle shares as collateral for personal debts. This pledge has increased from the previous year and may restrict his ability to access immediate liquidity if needed. Even with these constraints, Ellison remains one of the wealthiest individuals globally, with the financial means to potentially outmatch competing bids for Warner Bros. Discovery.

Strategic Moves and Market Outlook

Ellison's son, David, continues to press the case for Paramount Skydance's $30-per-share offer for Warner Bros. Discovery, arguing that it offers superior value and a quicker path to regulatory approval compared to Netflix's mixed cash-and-stock bid. The offer, which is backed by the Ellison family and RedBird Capital, is also supported by Middle East sovereign wealth funds and Affinity Partners, the private equity firm of Donald Trump's son-in-law, Jared Kushner.

Paramount maintains that its all-cash offer provides more certainty and value for shareholders. It also argues that a Paramount-Warner Bros. Discovery merger would foster greater competition and benefit consumers and creative talent. The company has criticized the Warner Bros. Discovery board for not engaging meaningfully with its proposals and for allegedly favoring Netflix's bid.

The outcome of this high-stakes bid for Warner Bros. Discovery will have significant implications for both the media industry and the broader technology sector. A prolonged battle could influence regulatory dynamics and investor sentiment around large-scale media consolidations. Analysts are closely watching how Oracle and other tech companies manage their AI investments, as the sector continues to evolve amid growing scrutiny.