Here's Why Oracle Stock Got Pummeled This Week

Oracle (NYSE: ORCL) stock declined 15.8% in the week to Thursday, 2 p.m. It's been another tough week for the company, and the stock is down almost 29% in 2026 at the time of writing. There's little doubt over what the problem is, and it boils down to its exposure to OpenAI.The spike in Oracle's credit default swap (CDS) pricing (the price to protect against a bond default) shocked the market in November, and unfortunately, it has stayed at elevated levels ever since. While the company's recent, successful $25 billion bond sale (part of a plan to raise $50 billion) allayed some fears, the market still has many concerns. Most of them center on its $300 billion deal with OpenAI and the fear that Oracle is burning cash to build out AI infrastructure for a customer that is burning through mammoth sums and is unlikely to be profitable until 2030. HSBC has estimated OpenAI needs more than $200 billion to fund its growth plans. Those fears weren't helped by Nvidia recently walking back an intent to invest $100 billion in OpenAI. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool