New York, January 21, 2026, 11:07 AM EST — Regular session
- Oracle shares fell 2.3%, slipping even as the Nasdaq-tracking QQQ rose roughly 1.4%
- Shares continue to slide following Tuesday’s 5.9% plunge amid tariff-related selling pressure on Wall Street
- Attention remains on AI investment and ongoing legal challenges; dividend set for Jan. 23
Oracle Corp shares dipped Wednesday, trailing behind the wider U.S. stock rebound as investors remained cautious about the company’s heavily debt-fueled effort to expand its artificial intelligence data center footprint.
Oracle dropped 2.3% to $175.72 in late morning trading, even as the Nasdaq-tracking Invesco QQQ climbed roughly 1.4%. The stock had fallen 5.85% on Tuesday. (MarketWatch)
Oracle’s lagging performance is significant as it now serves as a barometer for the expense of ramping up AI infrastructure — heavy initial investment with unclear returns down the line. The stock reacts fast to any signs of tighter financing or legal troubles.
Tuesday’s sell-off set the tone for the week. Wall Street suffered its sharpest single-day decline in three months after President Donald Trump threatened fresh tariffs on several European nations over a spat involving Greenland, sparking renewed worries about trade-driven market swings. “I would be surprised if there was a 3% to 5% drop this week,” said Jamie Cox, managing partner at Harris Financial Group, as investors braced for key U.S. economic data and major earnings reports due later in the week. (Reuters)
Oracle’s headline risk isn’t fading. Bondholders filed suit last week, accusing the company of hiding the need to take on hefty new debt for its AI infrastructure. This came after Oracle sold $18 billion in notes and bonds in September, right after unveiling a $300 billion, five-year deal to power OpenAI. Investors say they were caught off guard when Oracle secured $38 billion in loans for two data centers, describing the bond market’s reaction as “swift and bracing.” (Reuters)
That case has sparked broader questions over how much leverage Oracle can shoulder without driving up borrowing costs. Credit agencies see investment-grade debt as less risky, and traders have been quick to react to any signs that rating could come under threat.
Some on Wall Street are shifting the narrative. Guggenheim Securities analyst John DiFucci recently dubbed Oracle a “decade stock” and held firm on a $400 price target, MarketWatch reported. He highlighted the company’s “bring-your-own-chip” strategy—letting customers provide their own AI chips—as a way to keep infrastructure costs in check. (MarketWatch)
Timing is the issue. Oracle’s stock has been volatile since December, triggered by the company’s outlook and increased AI spending, which led to a steep selloff and several broker downgrades. That has investors wondering just how soon the returns will materialize. (Reuters)
Traders are waiting to see if Oracle can hold steady following its two-day drop, provided no new setbacks on funding, contracts, or lawsuits emerge. The wider market has bounced back, but Oracle hasn’t caught a lift from that move yet.
The risk is clear: if trade tensions worsen and financing remains tight, heavily leveraged AI expansions could suffer a double hit—both from growth concerns and rising borrowing costs. Legal issues could also make typical stock movements more volatile.
Oracle hasn’t set a date for its next quarterly earnings release yet, but cash returns are lined up. The board approved a 50-cent per share quarterly dividend, scheduled for payment on Jan. 23 to shareholders recorded by Jan. 9. (SEC)
Next up, investors will focus on Oracle’s upcoming earnings report for details on capital expenditure, cloud expansion, and potential shifts in financing the AI rollout. The company’s investor FAQ states its fiscal third-quarter results are due mid-March 2026. (Oracle)
