Key Stats for Oracle Stock
- Price change for Oracle stock: -4%
- $ORCL Share Price as of Apr. 28: $166
- 52-Week High: $346
- $ORCL Stock Price Target: $243
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What Happened?
Oracle (ORCL) stock fell roughly 4% on Tuesday after a Wall Street Journal report raised red flags about OpenAI, one of Oracle’s biggest customers.
- According to the report, OpenAI missed its internal target of reaching 1 billion weekly active users by the end of 2025.
- The company also fell short of monthly revenue targets earlier this year.
- Competition from Anthropic and Google’s Gemini has been eating into ChatGPT’s market share, which dropped from 86.7% to 64.5% of generative AI web traffic in just one year.
Perhaps the most alarming detail:
OpenAI’s CFO has reportedly raised internal concerns about whether the company can meet its computing contract obligations if revenue growth doesn’t pick up.
That’s a problem for Oracle. Last year, the two companies signed a $300 billion, five-year cloud infrastructure deal.
Oracle has been building out data center capacity specifically to serve that demand.
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What the Market Is Telling Us About Oracle Stock
Oracle stock is getting hit because investors are questioning the reliability of one of its largest revenue commitments. The concern isn’t that Oracle performed badly — it’s about what comes next.
Oracle’s most recent quarter was actually excellent.
- Quarterly Revenue and non-GAAP EPS both grew more than 20% year-over-year for the first time in 15 years.
- Remaining performance obligations surged to $553 billion.
- The company is also raising $50 billion to fund even more data center capacity.
The problem is timing. Much of that spending is happening ahead of revenue from the OpenAI deal, which isn’t expected to contribute meaningfully until next year.
If OpenAI continues to struggle, Oracle stock could face real pressure on its growth assumptions.
The selloff also spread to other AI names. SoftBank, which owns 13% of OpenAI, fell nearly 10% in Tokyo. AI infrastructure provider CoreWeave dropped 3.5%.
That said, not everyone is bearish. Wedbush analyst Dan Ives recently gave Oracle stock an Outperform rating, pointing to the company’s broader AI infrastructure buildout and multicloud database momentum.
For long-term investors, Oracle stock still carries one of the most compelling backlogs in enterprise tech. But Tuesday’s drop is a reminder that a business tied to a single major customer carries real concentration risk.
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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!
