Oracle’s $10bn Michigan data centre dealt a setback
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Fresh concerns about data-center funding weighed down Oracle’s stock on Wednesday, but the selloff is looking overdone to some on Wall Street. Oracle shares fell 5.4% on Wednesday after the Financial Times reported that Oracle’s primary data-center partner,
CoreWeave and Oracle have borrowed heavily to build more AI data-center capacity, spooking bond markets and sending debt-insurance prices soaring.
Oracle stock tumbled as the Financial Times reported that private lender Blue Owl Capital will not back a $10 billion deal for its next data center
Oracle ( ORCL 5.46%) stock fell as much as 16.5% on Dec. 11 in response to the company's second-quarter fiscal 2026 results. Now, at the time of this writing, Oracle is down roughly 42% from its 52-week high, which was made just three months ago.
Oracle Corp (NYSE:ORCL) shares are getting hit Wednesday morning following reports that one of its partners is backing out of a massive data center deal.
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Oracle ( ORCL 5.46%) stock skyrocketed after the company delivered its fiscal 2026 first-quarter report in early September, but since then, it's given up all of those gains and then some. The latest blow to the stock came when the company reported mixed results for its fiscal second quarter after the bell on Wednesday.
Oracle Corporation (NYSE:ORCL) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 10, the company announced its Q2 2026 financial results, with total remaining performance obligations rising 438% YoY in USD to $523 billion.
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Why Oracle Stock Is Sinking Once Again
Oracle lost a major financing partner for its Michigan data center, adding pressure to an already difficult week for the stock. The market is pricing Oracle bonds as riskier than its official credit ratings suggest.
With relatively tepid growth, rising debt, an increasing cash burn rate, soaring capex and reliance on money-losing OpenAI, $ORCL has not earned its premium valuation.
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