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Oracle Shares Experience Significant Pullback amid Capital Expenditure Concerns

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ChatGPT said: Business Honor Oracle Shares Face Pullback over Capex Plans

Business Honor
10 December, 2025

Oracle faces a 34% stock pullback amid capital expenditure concerns, yet strong AI demand provides potential investment opportunities.

Analysts at Mizuho Securities believe that Oracle will increase its usage of financing techniques as they become more common; specifically, vendor financing and capital leasing. By using these types of financing structures, Oracle will reduce the initial financial commitment and lower their overall debt burden. Mizuho's analysts are optimistic that Oracle's quarterly earnings report due December 10 will reveal additional details on Oracle's plans for financing its data centers. The analysts predict strong results for the second quarter fiscal year ending November 30, and think that Oracle may provide a lot of clarity around concerns expressed by shareholders about how they will fund their data centers.

A major drop in Oracle Corp.'s shares of about 34% was reported on September 10. This is due largely to anxiety among investors concerning the amount of capital needed to continuously build data centers and how Oracle can find the money for all of these investments. Although demand for high-density AI technology continues to exceed production levels, it appears that Oracle holds a very promising position. Their GPU installations have been confirmed generating revenues in as little as a few weeks after installation, even given their high costs of building them.

As investors await Oracle's upcoming earnings report, Oracle will be held accountable to their shareholders regarding explanatory language for their financing plans. Clarification on this topic may heavily influence investor opinions about Oracle, which could in turn dictate Oracle's growth path over the next few months. Oracle will be required to address both their existing capital cost issues and respond to the rapid growth and investment demands of AI in order to regain the confidence of investors who have historically viewed Oracle as a solid long-term investment.