Oracle Shares Tick Up as Investors Reassess AI Sell-Off

Oracle shares rose 1.3% on Monday as some investors returned to the stock after a steep, debt-driven sell-off tied to the company’s large investments in AI infrastructure. Broader U.S. tech indexes also climbed, with the Nasdaq Composite up about 0.95% and the S&P 500 rising 0.44%.

The rebound followed weeks of selling that left Oracle down roughly 28% year-to-date. The selling accelerated after reports that the company spent $16.5 billion on capital expenditures in the latest quarter, which pushed full-year free cash flow to a negative $23.7 billion.

At the end of May, Oracle’s reported debt stood at about $130 billion. Market commentary and analyst notes indicated the company might seek up to $40 billion in additional financing to support continued AI infrastructure build-out.

Oracle’s remaining performance obligation backlog was reported at about $638 billion, providing visibility into future revenue streams tied to cloud and software contracts. Several analysts maintained buy or equivalent ratings through June and raised price targets, citing ongoing demand for cloud services and AI-related offerings.

June was one of Oracle’s weakest months, with the stock tumbling around 35% after a near 40% rally in May. That June decline was the company’s steepest monthly drop since September 1990. Historical data show Oracle has suffered monthly declines of 30% or more eight times since 1986; in the seven prior instances the median return was a 16% gain over the following three months and a 93% gain over the following year, and the stock finished higher about two-thirds of the time.

Market estimates discussed by analysts put possible capital expenditures near $92 billion in the coming fiscal year. Investors and analysts continue to watch whether heavy, debt-funded spending will lead to sustained revenue gains sufficient to offset higher leverage and short-term negative free cash flow.

Monday’s modest gain narrowed some losses but left questions about the company’s debt level, future capital spending and the timing of any cash-flow recovery.