By Piyush Shukla
Publication Date: 2025-11-12 13:09:00
Oracle shares have plunged about 25% in just a month, falling from a record high of about $345 in early September 2025 to about $230 to $236 today. This sharp decline is largely due to growing doubts about the sustainability of Oracle’s AI-driven growth and cloud business. Despite securing big AI contracts like a massive $300 billion deal with OpenAI, investors are cautious after Oracle missed revenue expectations with $14.93 billion versus expected $15.04 billion. Earnings per share came in at $1.47, slightly below estimates.
The biggest shock came when reports revealed this Oracle’s cloud business – the company’s most important growth engine – runs on razor-thin margins.
Internal data leaked last month showed that Oracle The cloud infrastructure unit only generates about 14% gross marginwell below competitors such as Amazon Web Services (30-35%) and Microsoft Azure (40%+). That revelation shook investor confidence and nearly sent stocks plummeting 8% in a single session.
Insider…
