Key Stats for Oracle Stock
- Price change for Oracle stock: -2.8%
- $ORCL Share Price as of Feb. 2: $160
- 52-Week High: $346
- $ORCL Stock Price Target: $284
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Oracle (ORCL) stock dropped 3% on Monday after the company announced plans to raise between $45 billion and $50 billion during 2026 to fund its cloud infrastructure expansion.
The stock fell despite the announcement being aimed at meeting massive contracted demand from major customers like Nvidia, Meta, OpenAI, AMD, TikTok, and Elon Musk’s xAI.
The funding will come from a balanced mix of debt and equity.
- On the equity side, Oracle plans to raise about half of the proceeds through a combination of mandatory convertible preferred securities and a new at-the-market equity program of up to $20 billion.
- The company will issue common stock flexibly over time based on market conditions.
- On the debt side, Oracle intends to complete a single investment-grade senior bond issuance early in 2026.
The equity component is what spooked shareholders. Selling shares through an at-the-market offering will dilute existing investors, at least in the short term.
Traders estimate Oracle will sell about 10% of its total traded volume over the next few weeks. UBS analysts warned that raising $20 billion to $25 billion from stock sales “may not be warmly received by all equity holders.”
This announcement comes as Oracle stock has already fallen 50% from its September peak. The company dropped 11% in December after posting slightly lower-than-expected revenue in its quarterly results.
Investors have been nervous about Oracle’s aggressive AI buildout plans and the debt required to fund them.
The broader context matters here. Data center deals hit a record $61 billion in 2025 as companies scrambled to build infrastructure for AI.
Oracle raised $18 billion in a jumbo bond sale in September and signed a $300 billion deal with OpenAI.
At least $300 billion of Oracle’s $523 billion in remaining performance obligations is tied to OpenAI, according to analysts at D.A. Davidson.
See analysts’ growth forecasts and price targets for Oracle stock (It’s free!) >>>
What the Market Is Telling Us About Oracle Stock
The market is sending mixed signals about Oracle stock.
Bond investors reacted positively to the funding announcement. Oracle’s 5-year credit default swaps dropped 17% on Monday, signaling that debt investors feel more confident the company can avoid a credit downgrade.
“Equity financing significantly inhibits the downside for credit,” wrote Andrew Keches, a credit analyst at Barclays, who upgraded Oracle’s debt to overweight. Using equity as a funding lever signals to bond investors that Oracle isn’t solely reliant on debt.
But equity investors are less enthusiastic. The stock declined even as the company raises capital to meet contracted demand from some of the biggest names in tech. This puts Oracle in a tough spot.
The company needs substantial capital to build out its cloud infrastructure, but raising it through stock sales dilutes shareholders.
Oracle’s credit default swaps had soared late last year on concerns that massive data center commitments would damage the company’s balance sheet.
Keches noted that Oracle has been caught in a “peak fear” cycle for the past few months, with the market reacting negatively to virtually any headline.
The company’s dependency on OpenAI also creates risk. If OpenAI’s business slows or if the AI boom cools, Oracle could be left with expensive infrastructure and weakened finances.
Still, Oracle is positioning itself at the center of the AI infrastructure buildout. The company held back from detailing a comprehensive financing plan during its December earnings call, which hurt the stock and pushed up credit default swap prices.
This latest announcement provides more clarity, even if equity investors don’t love the dilution.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Oracle Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
