Oracle slumps 3% after announcing $50 billion fundraising plans. Here’s why

Data center giant oracle‘s shares fell 3% in early premarket Monday after the company said it would raise up to $50 billion to develop additional capacity for customers and an analyst said the company was considering laying off thousands to free up cash flow.

Hyperscalers have struggled to build the infrastructure needed for AI, and data center contracts are failing A record $61 billion in 2025 and several major tech companies are committing huge sums amid a funding rush.

Oracle said Sunday that it plans to generate $45 billion to $50 billion in gross revenue in calendar year 2026 to build additional capacity to meet contracted demand from its cloud customers, including: Nvidia, MetaOpenAI, AMDTikTok and xAI. Financing is provided through debt and equity.

On Jan. 26, an analyst note from TD Cowen said their “channel checks” suggested Oracle was considering laying off 20,000 to 30,000 employees, which could raise about $8 billion…