Should You Buy the Dip in Oracle Stock and Hold for 2026?

Shares of enterprise software and cloud computing major Oracle (ORCL) had a tough trading session Thursday. Nosediving by more than 15% intraday, the stock closed 11% lower to have its worst day on the exchanges since 2001, as its Q2 revenues missed estimates. Moreover, its five-year CDS spread widened sharply to reach its highest levels since 2009. This makes the cost of raising debt more expensive for the Larry Ellison-led company.

Oracle already has a debt pile of more than a hundred billion dollars, and it appears that they may require more fundraising, with the company increasing its capex forecast to about $50 billion in fiscal year 2026 from $35 billion earlier. A small cloud player earlier, Oracle's rise to become a serious contender in the cloud space, thanks to its $300 billion deal with OpenAI, was fueled by debt.