Here's Why Oracle Stock Slumped Today

MrDecoder · 2026-02-23T17:47:40+00:00

Oracle's stock has fallen 5.8%, down over 28% this year, due to concerns about funding its AI commitments and reliance on OpenAI. Speculation about stalled projects and reduced funding from Nvidia exacerbates the negative outlook.

MrDecoder

2026-02-23 17:47:40

Abstract generation in progress

Oracle (ORCL 6.38%) shares declined by 5.8% as of 11:30 a.m this morning. The stock is now down more than 28% this year as of the time of writing.

Why is Oracle stock declining in 2026

There’s little doubt as to the reason for the declines. It comes down to the bond and equity markets stressing Oracle’s ability to fund its AI-related spending commitments, and its reliance on the loss-making OpenAI for its future revenue.

Image source: Getty Images.

While all the hyperscalers have come under pressure this year after revealing mammoth spending commitments. It’s noticeable that the two with the heaviest exposure to OpenAI, Oracle, and, in turn, Microsoft, have both been hit hard. Meanwhile, Alphabet’s limited exposure and its ability to fund its investments have led it to outperform.

ORCL data by YCharts

The fears over Oracle have built up as its free cash flow and capital spending are moving in dramatically different directions.

ORCL Free Cash Flow data by YCharts

The latest speculation piles pressure on

As recently discussed, Oracle stock fell sharply after newsflow suggested Nvidia would commit only $30 billion to OpenAI’s latest funding round, compared to the $100 billion market watchers had previously expected.

Still, that was last week’s news. Over the weekend, The Information reported that the Stargate project (a joint venture including Oracle, OpenAI, and Softbank) announced last year, had stalled over ongoing disputes over the structure of the project.

Consequently, Oracle and OpenAI signed a $300 billioin deal in the Autumn, and Oracle shares have been under significant pressure since then. As such, the latest reports are only fanning the flames of uncertainty, and until OpenAI can convince the market that it can raise funding easily, Oracle stock is likely to be under pressure.

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