Why Oracle (ORCL) Shares Are Trading Lower Today

What Happened?

Shares of enterprise software giant Oracle ORCL fell 4.9% in the afternoon session after the company was initiated with a 'Sell' rating by Rothschild Redburn and announced plans to raise up to $18 billion through a bond sale. 

Rothschild Redburn stated that the market 'materially overestimates the value of Oracle's contracted cloud revenues,' suggesting investors priced in overly optimistic scenarios. Separately, the company's plan to raise funds through a new bond offering sparked investor caution. While the move was intended to support its expansion in artificial intelligence and data centers, investors were concerned about the potential impact on the company's debt levels.

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What Is The Market Telling Us

Oracle’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Oracle is up 76.5% since the beginning of the year, but at $293.11 per share, it is still trading 10.7% below its 52-week high of $328.33 from September 2025. Investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $4,902.