By Johnny Rice
Publication Date: 2026-02-04 17:00:00
Important points
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Oracle is facing a class-action lawsuit from bondholders who claim the company misled investors.
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Wall Street analysts have cut price targets across the board because of AI spending.
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Microsoft’s gains did nothing to allay fears about rising AI investments and future returns on those investments.
- 10 stocks we like better than Oracle ›
January was a tough month for oracle (NYSE:ORCL) investors. The business software giant posted a 15.6% share price decline, extending its decline after a less-than-stellar earnings report the previous month.
Three main factors were at play: a bondholder lawsuit, a wave of analyst downgrades and price cuts, and a macroeconomic environment that was hostile to AI infrastructure spending.
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Oracle is being sued
On January 14, bondholders filed a class action lawsuit in a Manhattan court on behalf of investors who bought $18.
