By Shan Ahmed Khan
Publication Date: 2025-12-26 14:59:00
Oracle (NYSE: ORCL) is closing out 2025 with the kind of volatility typically reserved for pure-play AI startups, not a 47-year-old enterprise software heavyweight. The stocks are about in the red 30% so far this quarterwhich puts the stock on track Largest quarterly decline since 2001according to market reports that tracked the move compared to Oracle’s drawdowns in the early 2000s. [1]
The selloff was fueled by a single, recurring question: Can Oracle finance and execute the buildout of an AI data center large enough to meet demand without impacting its cash flow and balance sheet? This concern has only increased as Oracle’s ambitions extend beyond the cloud. The company is now directly or indirectly associated with:
- A huge OpenAI-related cloud backlog That helped fuel a rally in mid-2025 (and later sparked concerns about OpenAI’s ability to pay at scale). [2]
- A high-profile restructuring of TikTok in the USin which Oracle is positioned as a “trusted security partner” and cloud manager…
