Oracle Shares Plunge as AI Strategy Faces Market Scrutiny

Oracle Corporation is experiencing one of its most severe stock declines in recent memory, with the former technology high-flyer witnessing a dramatic erosion of market value. The company, which once propelled founder Larry Ellison to briefly become the world’s wealthiest individual, has seen nearly one-third of its market capitalization vanish within just two months. November alone is shaping up to be the worst month for Oracle shares since 2011, raising critical questions about what’s driving this downturn and whether further losses lie ahead.

Technical Indicators Flash Warning Signs

Market technicians are observing concerning patterns in Oracle’s stock performance. The Relative Strength Index (RSI) has plunged to approximately 24, firmly positioning the stock in oversold territory and indicating substantial selling pressure. Market experts are closely monitoring whether this extreme selling activity might paradoxically trigger a short-term rebound.

Key technical factors include:
* RSI reading of just 24 points – deep in oversold range
* Nearly 30% market value decline over two months
* Weekly loss approaching 6%

Investor Confidence Erodes Over Expansion Strategy

Wall Street is growing increasingly skeptical about Oracle’s aggressive expansion approach. The technology giant is pouring billions into artificial intelligence infrastructure, financed primarily through substantial debt accumulation. This massive bet on AI is now becoming a central concern for investors, who worry that elevated tech sector valuations and enormous investments could prove unsustainable if major AI projects fail to deliver anticipated breakthroughs.

Should investors sell immediately? Or is it worth buying Oracle?

The numbers tell a compelling story: While competitors in the cloud computing space maintain relative stability, Oracle has surrendered more than a quarter of its value over the past 30 trading days. Since reaching its peak in early September, the company has registered a staggering 35 percent decline.

Debt-Fueled Strategy Under Microscope

The core issue centers on Oracle’s financial approach. Bank of America analysts have identified several critical challenges: intense AI competition, massive capital requirements, and weakened free cash flow performance. The market appears to be aggressively pricing in these risks, delivering harsh judgment on the company’s debt-financed AI offensive.

The critical question facing investors remains whether Oracle shares have found their bottom or if the downward trajectory will continue. With the stock trading at levels not seen in months and technical indicators suggesting extreme oversold conditions, market participants are divided on whether this represents a buying opportunity or signals deeper fundamental problems within Oracle’s strategic direction.