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Oracle Shares Tumble 6.5% as Iran Conflict Sparks Market Sell-Off

Oracle shares plunge 6.5% on Iran war fears, retail sentiment spikes despite debt concerns.

  • Oracle shares fell 6.5% on Monday amid a market-wide sell-off triggered by the escalation of the war in Iran.
  • The stock has declined 47% since the start of June, falling below the crucial $134 support level.
  • Retail sentiment on Stocktwits climbed to ‘extremely bullish’ and message volume surged over 2,300% as the dip attracted fresh interest.

Oracle Corp. shares tumbled 6.5% on Monday to their lowest level in 14 months as a fresh escalation between the U.S. and Iran rattled global markets. The move sparked a wave of commentary on Stocktwits, reigniting the debate over a company that has drifted into risky territory.

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Oracle has one of the largest remaining performance obligation backlogs in tech but is piling on debt to build capacity. Its future order book relies heavily on OpenAI, which itself is on shaky footing. Shares fell 47% since the start of June.

On Monday, ORCL fell below the crucial $134 support level, and message volume surged over 2,300%. One trader wrote, “Oracle is now trading below where it was before landing the OpenAI deal. Wall Street is repricing a $300+ billion OpenAI contract as a liability instead of an asset.”

OpenAI and Oracle signed a $300 billion, five-year cloud computing contract last September. Another trader noted, “The market sees the opportunity, but the concern is execution. $55B+ invested in AI data centers has pressured free cash flow.”

Last month, Oracle reported a backlog surge of 363% to a record $638 billion, but it also forecasts up to $95 billion in capital expenditure. To achieve this, Oracle will raise $40 billion in debt and equity this fiscal year.

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