Oracle Stock Plunges Despite Nvidia & Meta Backing - The Hidden Crypto Connection

Oracle's stock just took a nosedive—and the usual suspects aren't to blame. Forget earnings misses or guidance cuts. This drop has a distinctly digital flavor.

The Cloud Exodus Is Real

Nvidia and Meta just doubled down on Oracle's infrastructure. Big commitments, bigger checks. So why the sell-off? The market's sniffing out a deeper shift. Enterprises aren't just migrating to the cloud anymore; they're bypassing traditional vendors entirely for decentralized alternatives. Think distributed compute networks over centralized data centers.

Follow the Smart Money

Institutional capital has a new playbook. It's not about picking the winning cloud provider—it's about betting on the protocol that could make them all obsolete. The real 'oracle' in this equation isn't the database giant; it's the blockchain-based data feeds securing billions in DeFi. That's where the growth narrative has moved.

The Numbers Don't Lie (But They Do Obfuscate)

Traditional metrics look solid. Revenue streams appear secure. Yet the valuation compression tells a different story—a story of a legacy tech stack facing irrelevance in a tokenized world. It's the classic finance dance: applaud the quarterly figures while quietly pricing in long-term disruption.

Oracle's plunge isn't a failure of execution. It's a canary in the coal mine for any centralized infrastructure play. The next wave of computing won't be leased from Redwood Shores—it'll be sourced from a globally distributed network no single entity controls. The market is finally connecting the dots, and for legacy tech, the picture isn't pretty.

Why This Matters to Investors

Oracle's stock has pulled back recently—after a big run-up in the wake of the company's earnings report in September—amid worries about an AI bubble and its reliance on a few big customers in the AI space. The stock's drop in extended trading Wednesday suggests the latest results weren't enough to alleviate those concerns.

Heading into Wednesday night's results, Wall Street analysts warned Oracle WOULD face a challenging setup, with investors likely to be watching closely for signs demand for Oracle's AI offerings is broad-based.

The company's shoutout to heavy AI spender Meta may not have soothed those concerns, and its commitments from Nvidia, which is a big supplier of Oracle's chips, could underscore worries about circular deals.

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Looking ahead, Oracle said it sees adjusted earnings per share of $1.70 to $1.74 for the third quarter, in line with analysts’ estimates. Oracle’s forecast of 19% to 21% revenue growth was above projections.

As of Wednesday's close, shares of Oracle have fallen about 35% from their September highs. The stock is still up around 33% since the start of the year, but that pales with its 100% year-to-date gain in September.