Here's Why Oracle Stock Got Hammered Last Month
The Motley Fool
by newsfeedback@fool.com (Lee Samaha)March 3, 2026
AI-Generated Deep Dive Summary
Oracle (NYSE: ORCL) stock experienced a significant decline last month, with an 11.7% drop according to S&P Global Market Intelligence data. The broader trend shows the stock down more than 23% in 2024 as of recent updates. However, the key turning point appears to be mid-September when news broke about Oracle's $300 billion deal with OpenAI. Initially greeted with enthusiasm, this partnership quickly lost investor confidence, leading to a sharp decline. Since mid-September, Oracle's stock has fallen over 54%, reflecting broader market concerns.
The context of this downturn is further highlighted by comparing Oracle's performance with other major tech companies. Microsoft, which operates Azure—a cloud service that contributes 45% of its backlog from OpenAI—has also underperformed significantly. This aligns with investor worries about the potential risks tied to OpenAI exposure and hyperscaler competition. In contrast, Alphabet (parent company of Google), which has minimal involvement with OpenAI, continues to outperform in the market.
This situation underscores broader financial concerns among investors, particularly regarding Oracle's rising debt levels and decreasing cash flow. The decline also raises questions about the sustainability of its business model in the face of increasing competition and shifting market dynamics. For readers interested in finance, this highlights the importance of evaluating long-term risks tied to high-profile partnerships and the impact of technological shifts on company valuations.
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Originally published on The Motley Fool on 3/3/2026