Oracle Stock Plunges 6% After Record High of $328.33 - Tech Giant’s Rollercoaster Ride Continues

Oracle's meteoric rise hits brutal reality check as shares tumble sharply from all-time highs.

The Peak Before the Plunge

Just one day after celebrating its historic peak, Oracle investors watched gains evaporate as the stock nosedived. The 6% drop serves as a stark reminder that even tech titans aren't immune to gravity's pull.

Market Whiplash in Real-Time

Traders experienced whiplash as Oracle's valuation swung violently within 24 hours. The sudden reversal highlights how quickly sentiment can shift in today's hyper-connected markets—where algorithms often react faster than human logic.

Traditional Finance's Predictable Drama

While crypto markets dance to their own volatile rhythm, Oracle's classic 'pump-and-dump' spectacle proves Wall Street still writes the textbook on dramatic price swings. Sometimes the old guard does it best—just ask anyone who bought at the top.

Gil Luria questions Oracle’s real growth story

Safra said Oracle’s remaining performance obligation had surged to $455 billion, which is 359% more than the same time last year. That number sounds impressive until you realize how much of it may be from a single buyer.

And it’s not just a one-off contract. OpenAI also agreed to build 4.5 gigawatts of data center capacity in the U.S., a deal that directly benefits Oracle’s cloud infrastructure rollout.

Inside Oracle’s forecasts, the company expects its cloud infrastructure revenue to grow 14 times larger by 2030. But with so much pinned to OpenAI, even a small delay or shift in that partnership could wreck that entire projection. That’s why Gil’s warning mattered, and why the market dumped the stock.

Global markets surge as Fed rate cuts look likely

While Oracle tanked, the rest of the equity market stayed hot. Stocks across the globe hit new records this week as traders bet on rate cuts. The MSCI All Country World Index reached fresh highs for the fourth day in a row, tracking over 2,500 companies from both developed and emerging markets.

In the U.S., the S&P 500 closed at another record on Wednesday, backed by Optimism that the Federal Reserve will start easing. That came after the U.S. producer price index dropped 0.1% in August, a huge surprise since Wall Street expected a 0.3% increase. The sudden weakness in wholesale prices gave investors more reason to believe that the Fed is ready to cut.

Eddy Loh, head of investment strategy at Maybank, said, “Markets have been a bit more resilient than what we’ve been expecting.” He added that the rally is fueled by strong corporate earnings and solid growth, not just in the U.S., but also in Europe, Japan, and major Asian markets.

The CME FedWatch tool now shows a 92% chance of a 25-basis-point cut at the Fed’s next meeting on September 17. That shift in sentiment also triggered risk-on behavior across Asia, where Japan’s Nikkei 225, South Korea’s Kospi, and Singapore’s Straits Times Index all broke records this week.

Marvin Loh, senior global macro strategist at State Street, said, “Given that we are building a stronger case for the Fed to restart its cutting cycle while the economy remains on a fairly solid footing, this environment serves as a tonic for risk investors.”

But none of that helped Oracle on Thursday. Investors took their gains and left once it became clear that the company’s future growth was riding on just one name.

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