By Amit Singh
Publication Date: 2026-02-20 18:08:00
Oracle Corporation (ORCL) shares have fallen sharply, falling over 55% from its 52-week high of $345.72. The decline reflects investor concerns about the company’s aggressive investment plans, its heavy reliance on a single customer and ongoing questions about how it will finance the infrastructure needed to meet rising demand.
Oracle is in the midst of a significant expansion of its data center footprint to support contracted AI workloads. While these investments coincide with the long-term growth of AI workloads, the short-term financial burden is already evident. In the second quarter of fiscal 2026, the company had negative free cash flow of $10 billion. The decline was due to capital spending of $12 billion. This level of investment has significantly reduced cash generation and tightened control over capital allocation discipline.
Oracle is confident that these investments will result in sustained, high-margin cloud and AI revenue streams…
