Oracle’s Stock Volatility Amid OpenAI Deal Speculation
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Oracle shares plummeted 6% after reaching a record high of $328.33, as investor enthusiasm waned over concerns about the source of its multi-billion-dollar contracts. CEO Safra Catz had initially sparked a 30% after-hours rally by announcing four major deals, but skepticism emerged when analysts linked the backlog to OpenAI.
The $300 billion five-year agreement with OpenAI, revealed Wednesday, now casts doubt on Oracle's organic growth narrative. Analyst Gil Luria noted the company's $455 billion performance obligation—up 359% year-over-year—may be overly reliant on a single client. Oracle's cloud infrastructure ambitions, including a 4.5-gigawatt data center project with OpenAI, face renewed scrutiny.
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