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Why Oracle (ORCL) Shares Are Trading Lower Today

ORCL Cover Image

What Happened?

Shares of enterprise software giant Oracle (NYSE: ORCL) fell 4.9% in the afternoon session after the company was initiated with a 'Sell' rating by Rothschild Redburn and announced plans to raise up to $18 billion through a bond sale. 

Rothschild Redburn stated that the market 'materially overestimates the value of Oracle's contracted cloud revenues,' suggesting investors priced in overly optimistic scenarios. Separately, the company's plan to raise funds through a new bond offering sparked investor caution. While the move was intended to support its expansion in artificial intelligence and data centers, investors were concerned about the potential impact on the company's debt levels.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Oracle? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Oracle’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Oracle is up 76.5% since the beginning of the year, but at $293.11 per share, it is still trading 10.7% below its 52-week high of $328.33 from September 2025. Investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $4,902.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.

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