By Daniel Foelber
Publication Date: 2026-02-26 22:27:00
oracle (ORCL 4.48%) The stock has fallen 37% in the past six months and 24% year to date as concerns over artificial intelligence (AI) spending clash with a broader selloff in software stocks.
Even though Oracle has fallen sharply in a short period of time, investors should consider the following warning signs before buying Growth stock.
Image source: Getty Images.
1. The AI spending race could lead to debt problems down the road
In September, Oracle forecast that revenue from its cloud segment, Oracle Cloud Infrastructure (OCI), would rise from about $10 billion in fiscal 2025 to $144 billion in fiscal 2030 – including the second half of calendar year 2029 and the first half of calendar year 2030.
To achieve this goal, Oracle is building a mix of OCI-specific public clouds; Multiclouds, in which it physically stores its data center infrastructure in companies such as Amazon, MicrosoftAnd alphabetis Google Cloud; and on-premises hybrid clouds that bring OCI directly into the customer’s data…