Oracle Stock Declines Amid Concerns Over Future Growth

NEW YORK, NY — Oracle Corporation shares dropped over 4% on October 19, 2025, following a recent investor conference that revealed doubts about the company’s capital expenditures related to its ambitious AI infrastructure plans.

On October 16, Oracle’s stock was priced at $291.31 but fell by $14.18 to close at $277.13 on the announcement. Analysts from Jefferies noted concerns surrounding Oracle’s spending, stating that there was no clear plan on how the company would finance its growing capital requirements.

Despite the decline, UBS recently raised its price target for Oracle from $360 to $380, suggesting that the stock is undervalued. This comes as Oracle projects an impressive $166 billion in infrastructure revenue by 2030 but faces scrutiny over its high cash burn as it invests heavily in AI.

“Investors are worried about Oracle’s high capital expenditures to meet its growing demand,” wrote Jefferies analysts in a note. “The lack of specific commentary on future capex during their Analyst Day raises additional concerns about financing options to support this expansion.”

Oracle’s stock had gained over 18% in the past three months and more than 70% year-to-date until this recent downturn, significantly outpacing the Nasdaq index. The company’s shares surged after positive news about cloud infrastructure margins announced at the AI World conference.

Overall, analysts continue to highlight the potential for long-term growth, but short-term market reactions display skepticism regarding Oracle’s expenditure strategy.