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Oracle Shares Slip Again as AI Spending Concerns and Tech Selloff Continue to Pressure the Stock Friday
Shares of Oracle continued their retreat Friday, falling 0.90% to $151.22 in midday trading, as the database and cloud-computing giant remains caught in a broader market reassessment of how much technology companies should be spending — and borrowing — to fund the artificial intelligence buildout.
The decline, while modest on its own, extends a punishing stretch for Oracle that has seen the stock fall dramatically from its highs earlier this year, even as the company’s underlying cloud business continues to post strong growth.
A stock far removed from its peak
Oracle’s current price tells only part of the story without context from where the stock has traveled this year. The stock’s 52-week high of $345.72 was set on September 10, 2025, while its 52-week low of $134.57 came on April 10, 2026. At Friday’s level near $151, shares remain much closer to that low than to the highs reached less than a year ago — a decline that reflects a dramatic shift in how investors are pricing Oracle’s aggressive AI infrastructure bet.
That volatility has been particularly pronounced in recent weeks. Oracle is on pace for its worst month since 2001, a sharp reversal following the strongest month in a generation — the stock had surged 39.9% in May, its best monthly performance since February 2000, driven by enthusiasm over the company’s AI-related order backlog.
The earnings report that triggered the slide
Much of Oracle’s recent struggles trace back to its fiscal fourth-quarter earnings report, which beat Wall Street’s expectations on the surface but rattled investors over the company’s spending plans. Oracle reported adjusted earnings of $2.03 per share, ahead of the $1.96 analysts had expected, on revenue of $19.18 billion versus a $19.10 billion estimate, with revenue up 21% year over year. Despite beating those numbers and raising its profit forecast, the stock still tumbled. Shares dropped 10% in extended trading after Oracle disclosed plans to raise more money to finance its AI buildout, with the company saying it foresees raising $40 billion through additional debt and equity financing, including a previously announced $20 billion share sale.
The scale of that financing push, layered on top of what the company had already raised, is what spooked investors. That $40 billion in fresh financing comes after Oracle already raised $43 billion in debt and $5 billion in equity during fiscal 2026 — a combination that has concerned investors given lingering uncertainty about whether demand for artificial intelligence can ultimately justify that much new capital.
The cash flow picture behind the spending
The financial commitments tied to Oracle’s AI expansion have shown up clearly in its cash flow statements. For the fiscal year, Oracle reported $23.7 billion in negative free cash flow, with depreciation nearly doubling to $7.62 billion, while capital expenditures jumped 162% to $55.7 billion. Looking ahead, the company has signaled spending will remain elevated. Oracle’s new chief financial officer, Hilary Maxson, said the company’s net cash outlay for capital expenditures in fiscal 2027 will be around $70 billion, excluding $20 billion to $25 billion in prepayments from customers and timing impacts.
A workforce reshaped around AI priorities
Alongside the spending increases, Oracle has been making significant changes to its workforce as it reorients the business toward AI and cloud infrastructure. Oracle’s recent regulatory disclosures show a notable restructuring that reduced its workforce by 13%, alongside a record $638 billion in remaining performance obligations. Coverage of the filing put a more specific number on those job losses. Oracle disclosed in its latest annual report that it cut about 21,000 jobs over the past fiscal year, shrinking its workforce roughly 13% as the company reshapes its business around AI.
Where the demand is coming from
Despite the financial strain, Wall Street has pointed to one customer in particular as the anchor behind Oracle’s massive backlog of future business. Bank of America analysts, who recommend buying Oracle shares, said over 50% of the company’s remaining performance obligation comes from OpenAI. Oracle’s leadership has also emphasized the physical scale of the infrastructure buildout underway. Oracle CEO Clay Magouyrk said on a conference call with analysts that the company is looking to bring online almost one gigawatt worth of computing power in the current quarter alone, roughly matching the total brought online for all of fiscal 2026.
That data center expansion has continued to draw outside investment as well. Related Digital and Blackstone said they secured funding for a $16 billion Oracle data center site in Michigan.
Mixed signals from analysts
Not all of Friday’s pressure traces back to the broader AI spending debate — some of it appears tied to company-specific financing mechanics. One recent analyst note warned that preferred stock conversions and at-the-market equity issuances may dilute shareholders and pressure Oracle’s stock price.
Even so, some independent analysis has pushed back on the idea that Oracle’s long-term growth story is in jeopardy. Investment firm Evercore said Oracle’s 10-K filing further strengthens the view that the company’s outlook for fiscal 2027 remains intact, despite ongoing investor concerns about the scale of its spending.
Part of a broader sector retreat
Friday’s dip in Oracle shares is unfolding alongside declines across much of the rest of the technology sector, as investors reassess AI-related valuations more broadly following a long rally. Several of the market’s largest technology names were trading lower in the same session, reflecting a pattern of selling that has spread well beyond any single company’s specific circumstances.
What investors are watching next
With Oracle’s next earnings report not expected until September, investors are likely to spend the coming weeks parsing the company’s spending disclosures, its OpenAI-anchored backlog, and broader sentiment around AI infrastructure investment for clues about where the stock goes from here. Oracle delivered more than 1.2 gigawatts of data center capacity in fiscal 2026, underpinning 77% year-over-year growth in its cloud infrastructure business — a figure bulls point to as evidence that demand remains robust even as the stock continues to struggle. Whether that underlying growth can eventually outweigh concerns about Oracle’s ballooning capital needs remains the central question hanging over the stock as it searches for a floor well below its highs from less than a year ago.
Vasily Zyryanov is an individual investor and writer.He uses various techniques to find both relatively underpriced equities with strong upside potential and relatively overappreciated companies that have inflated valuation for a reason.In his research, he pays much attention to the energy sector (oil & gas supermajors, mid-cap, and small-cap exploration & production companies, the oilfield services firms), while he also covers a plethora of other industries from mining and chemicals to luxury bellwethers.He firmly believes that apart from simple profit and sales analysis, a meticulous investor must assess Free Cash Flow and Return on Capital to gain deeper insights and avoid sophomoric conclusions.While he favors underappreciated and misunderstood equities, he also acknowledges that some growth stocks do deserve their premium valuation, and its an investor’s primary goal to delve deeper and uncover if the market’s current opinion is correct or not.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
An individual investor analyzing equities based on cash flow potential, relative value and economic moat. I also write articles on ETFs with a focus on sustainable long-term total returns. I bring years of public accounting experience, economics and quantitative background to my research. In my idea generation process, I back up story-telling with quantitative analysis to pin down the upside/downside potential. Focus is on both the long/short side, although I enjoy short stories more.I am proficient in Python and use algorithms to comb through the stock market to uncover companies that the market either overhypes or ignores. While the focus is on fundamental analysis, I am also incorporating technical analysis to maximize the success rate of my ideas. I also write educational articles on different financial and accounting issues that affect companies’ valuations and help investors make better and informed decisions. I am a former certified public accountant (CPA) with years of public accounting experience. My educational background is in accounting and economics. I also pursued a PhD in economics program researching sovereign debt defaults in monetary unions. After obtaining an all but dissertation status, I left the program to pursue other professional interests. My current focus is on writing on Seeking Alpha, investing and my YouTube channel (The Investing Mantic) where I create educational videos on investing and peronsal finance topics.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
BMBL is rated as a highly speculative Hold as a bet on their turnaround plan with high execution risks and material debt overhang with rising interest costs and strict covenants.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
US strikes Iran in response to attack on cargo ship in Strait of Hormuz
Does it feel like 2021 in here?
Wendy’s shares started the day with a 15% gain, in what appeared to be a short squeeze of the restaurant chain’s stock. But then the stock promptly turned lower, losing all of the day’s gains, which had built on Wednesday’s 26% jump. Shares closed lower 6.7%.
The moves have all the hallmarks of the kind of volatility that made headlines in 2021, when retail investors banded together online to send shares of companies like GameStop and AMC Entertainment soaring—and inflict painful losses on hedge funds that had placed short bets on the stocks. These do-it-yourself investors bought $15 million worth of Wendy’s shares on a net basis yesterday, according to data from Vanda Analytics.
NEW YORK — Intel Corp. shares declined more than 3 percent on Friday, falling to $128.62 after losing $4.25, as investors continued assessing the company’s challenges in an increasingly competitive semiconductor market.
The drop reflects ongoing concerns about Intel’s position relative to rivals in artificial intelligence chips and broader foundry services. The company has faced significant pressure as it works to regain technological leadership and market share in key growth areas.
Intel’s recent performance has been impacted by delayed product launches, manufacturing challenges and increased competition from companies like Nvidia and AMD. The chipmaker’s efforts to restructure and invest in advanced manufacturing have required substantial capital while delivering mixed results.
The company’s foundry business, aimed at competing with Taiwan Semiconductor Manufacturing Company, has struggled to attract sufficient external customers. Intel’s ability to execute on its ambitious roadmap remains central to investor confidence.
Business Challenges and Strategy
Intel has undertaken a comprehensive restructuring plan including cost-cutting measures, organizational changes and increased focus on core competencies. The company’s “IDM 2.0” strategy combines internal manufacturing with external foundry partnerships.
Leadership changes and strategic reviews have aimed to streamline operations and improve execution. The company continues investing heavily in new process technologies and manufacturing facilities in the United States and Europe.
Government support through the CHIPS Act has provided funding for domestic semiconductor manufacturing expansion. Intel’s role in strengthening U.S. chip production has been a key element of its strategy.
The company’s client computing and data center businesses face intense competition. Maintaining relevance in personal computers while expanding in artificial intelligence and cloud computing requires balanced resource allocation.
Competitive Landscape
Nvidia’s dominance in artificial intelligence accelerators has challenged Intel’s position in data center markets. The company’s Gaudi accelerators and other AI offerings aim to provide alternatives but face significant hurdles in gaining market share.
Advanced Micro Devices has made inroads in both consumer and server markets with competitive processor offerings. Intel’s response includes new generations of Core and Xeon processors with improved performance and efficiency.
Foundry competition from TSMC and Samsung remains formidable. Intel’s efforts to establish itself as a major contract manufacturer require overcoming customer concerns about technology and reliability.
The semiconductor industry’s cyclical nature and rapid technological change create both opportunities and risks. Intel’s ability to innovate and execute will determine its competitive standing.
Financial Performance
Intel has reported mixed financial results in recent quarters, with revenue pressures in traditional segments offset by investments in future growth areas. The company’s gross margins have faced challenges from manufacturing ramp-up costs and competitive pricing.
Restructuring charges and capital expenditures have impacted short-term profitability while aiming for long-term benefits. The company’s balance sheet and cash position provide resources for continued investment.
Analysts have expressed varied views about Intel’s turnaround prospects. Some see significant upside if execution improves while others remain cautious about competitive challenges.
Government and Policy Context
U.S. government initiatives to bolster domestic semiconductor manufacturing have provided Intel with substantial funding and policy support. The company’s expansion plans align with national security and economic development goals.
International trade tensions and export restrictions affect semiconductor supply chains and market access. Intel’s global operations require careful navigation of geopolitical complexities.
Regulatory scrutiny of the semiconductor industry continues regarding competition, national security and technology transfer. Compliance and strategic positioning in this environment remain important considerations.
Investment Considerations
Intel’s share price performance reflects investor uncertainty about its competitive position and execution capabilities. The stock offers exposure to semiconductor industry trends with significant potential upside if turnaround efforts succeed.
Risks include continued competitive pressures, execution challenges in manufacturing and potential further delays in product roadmaps. Intel’s substantial cash reserves and government support provide some buffer against these risks.
Longer-term investors may see value in Intel’s technology assets, manufacturing capabilities and potential recovery. However, patience and thorough analysis of quarterly results remain essential.
The semiconductor sector’s importance to technology advancement and national security supports long-term interest in companies like Intel. Its role in the industry ecosystem ensures continued relevance.
Future Outlook
Intel’s leadership has outlined ambitious plans for process technology leadership and foundry competitiveness. Successful execution of these initiatives could restore the company’s position as an industry leader.
The company continues investing in research and development while streamlining operations. Its ability to innovate and adapt will determine its success in an increasingly competitive landscape.
Investors will closely monitor upcoming earnings reports and guidance for signs of progress. Management’s ability to deliver on commitments will influence market perception and valuation.
The semiconductor industry’s fundamental growth drivers remain strong despite periodic challenges. Intel’s technological heritage and manufacturing expertise provide foundations for potential recovery and growth.
As the company navigates its transformation, its contribution to American semiconductor capabilities and global technology advancement will continue. Intel’s progress will be watched closely by industry participants, policymakers and investors.
The meme-stock crowd has a new favorite burger chain.
Shares of Wendy’s WEN 6.41%increase; up pointing triangle have soared this week after legions of retail traders piled into the beaten-down restaurant operator, reviving a playbook that seeks to punish the haters (professional investors who short-sell stocks) for betting against the stock. And as investors had with GameStop, AMC Entertainment and other meme-stock favorites, Wendy’s new champions took to Reddit, the message forum app, to defend the fast-food chain and cheer on the rally.
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Business
Seritage Growth Properties: Good Price For Valley View, But Lengthy Potential Wait For Closing
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Apogee Enterprises, Inc. 2027 Q1 – Results – Earnings Call Presentation (NASDAQ:APOG) 2026-06-26
Q1: 2026-06-26 Earnings Summary
EPS of $0.57 beats by $0.16
| Revenue of $342.68M (-1.14% Y/Y) beats by $11.14M
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Nvidia, Qualcomm, Apple, Wendy’s, and More Stocks That Explain Today’s Market
Summit Research focused on finding fundamental- and catalyst-driven long/short ideas in the tech sector. Key industries covered include big tech, electric vehicles and autonomous mobility, semiconductors, software, and AI.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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