Oracle shares plunge 19% amid AI spending and debt concerns

Oracle Corp.'s stock fell 19% over the week to June 27, marking its steepest single‑week drop since the 2001 dot‑com collapse. Investors cited the company's mounting long‑term debt—about $122 billion—and its aggressive spending on artificial‑intelligence infrastructure, including large data‑center builds and contracts with firms such as OpenAI. Despite the sell‑off, analysts largely maintained buy or hold ratings, with price targets ranging from $164 to $325, suggesting the decline may be an over‑reaction.

Institutional activity around the stock also shifted. Argent Advisors trimmed its Oracle holding by 76% in the first quarter, selling 4,421 shares and reducing its stake to 1,397 shares valued at roughly $206,000. Other firms such as FSA Wealth Management, Mpwm Advisory Solutions, Turning Point Benefit Group, HFM Investment Advisors, and Basepoint Wealth either opened new positions or increased existing ones, reflecting mixed sentiment among investors despite the sharp price drop.