Oracle (ORCL) shares have plunged roughly 62% from their all-time high and are now trading around a new 52-week low of $128.42. The sharp selloff reflects growing investor concerns over the company's aggressive AI infrastructure spending, rising debt, potential shareholder dilution, and its dependence on a handful of major AI customers, primarily OpenAI.
The biggest concern is Oracle's spending plans. The company expects capital expenditures to surge in fiscal 2027 as it expands its cloud infrastructure to meet booming AI demand. To help finance those investments, Oracle plans to raise $40 billion through a combination of debt and equity, fueling worries about higher leverage and dilution.