/Oracle%20Corp_%20logo%20on%20phone%20and%20stock%20data-by%20Rokas%20Tenys%20via%20Shutterstock.jpg)
Shares of Oracle Corporation (ORCL) have fallen sharply, dropping over 55% from their 52-week high of $345.72. The decline reflects investor concern over the company’s aggressive capital spending plans, its heavy reliance on a single customer, and lingering questions about how it will finance the infrastructure required to meet surging demand.
Oracle is in the midst of a major expansion of its data center footprint to support contracted AI workloads. While these investments align with the secular growth of AI workloads, the near-term financial strain is already evident. In the second quarter of fiscal 2026, it delivered a negative free cash flow of $10 billion. The decline was due to the capital expenditures of $12 billion. That level of investment has materially compressed cash generation and heightened scrutiny around capital allocation discipline.
