Oracle Stock Crashes 50% Since June Amid AI Growth Concerns
Oracle's stock has plummeted over 50% since June 2, 2026, marking a 36% year-to-date decline against a 9% gain for the S&P 500. The stock is trading at its lowest forward price-to-earnings ratio in over four years at 15.5 times. Investors are questioning whether Oracle's AI-fueled growth expectations have become too aggressive, despite continued large cloud infrastructure deals. Concerns include heavy capital spending on data centers and power infrastructure, which could pressure margins and cash flow, as well as intense competition from Microsoft Azure, Amazon Web Services, and Google Cloud. Wall Street analysts remain largely bullish, with 86% rating the stock a Buy or Strong Buy. However, BD8 Capital Partners CEO Barbara Doran highlighted execution risk, customer concentration, and a recent S&P debt downgrade to BBB- (one notch above junk) as key concerns. The article concludes it is hard to see Oracle recovering a sizable chunk of losses by year-end.
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Oracle Stock Crashes 50% Since June Amid AI Growth Concerns
Oracle's stock has plummeted over 50% since June 2, 2026, marking a 36% year-to-date decline against a 9% gain for the S&P 500. The stock is trading at its lowest forward price-to-earnings ratio in over four years at 15.5 times. Investors are questioning whether Oracle's AI-fueled growth expectations have become too aggressive, despite continued large cloud infrastructure deals. Concerns include heavy capital spending on data centers and power infrastructure, which could pressure margins and cash flow, as well as intense competition from Microsoft Azure, Amazon Web Services, and Google Cloud. Wall Street analysts remain largely bullish, with 86% rating the stock a Buy or Strong Buy. However, BD8 Capital Partners CEO Barbara Doran highlighted execution risk, customer concentration, and a recent S&P debt downgrade to BBB- (one notch above junk) as key concerns. The article concludes it is hard to see Oracle recovering a sizable chunk of losses by year-end.