Oracle Share Price Drops 1% on Job Cut Reports, OpenAI AI Expansion Strain

Overview

• Oracle shares fell nearly 1% as reports of large job cuts worried investors.

• Funding stress around AI data centres raised doubts over Oracle’s expansion plans.

• The stock is hovering near key support levels amid cautious trading volumes.

Oracle share price went down 0.92% to Rs. 7,683 at press time. The stock opened at Rs. 7,850. It touched a high of Rs. 7,850.50 and slipped to a low of Rs. 7,637.50. The previous close stood at Rs. 7,754.50, indicating mild but steady selling pressure throughout the session. The stock’s trading volume was lower than usual at 62,356 shares, compared with the 20-day average volume of over 1.43 lakh shares.

The dip came as investors reacted to reports of large-scale layoffs of up to 30,000 jobs. The company is also facing funding pressure linked to its ambitious AI data centre expansion plans. Here’s an in-depth analysis on Oracle share price based on Moneycontrol data.

Why Oracle Share Price is Under Pressure

The weakness in Oracle share price comes after reports that the company may cut 20,000 to 30,000 jobs to manage funding stress tied to its AI data centre projects. According to market reports, many US banks have stepped back from lending to Oracle for these expansions. The banks cited concerns around the financing capacity of the company.

While Oracle has not officially confirmed the layoffs, reports suggest job cuts could help free up $8-10 billion in cash flow. The financial strain has allegedly been caused by the company’s 300 billion partnership with Sam Altman-led OpenAI. The Canadian Media  reported the same in an X post:

Oracle has been making aggressive bets on cloud and AI infrastructure. However, the scale of investment needed is large. Estimates suggest the company may need up to $156 billion in capital expenditure for its data centre buildout over time. Questions around how this expansion will be funded have started to worry investors.

Stock Performance and Technical Levels

Oracle share price today traded closer to key support levels. The pivot point (PP) stood at Rs. 7,729, with immediate support at Rs. 7,636. A break below this level could open the door to further downside toward Rs. 7,518. On the other hand, resistance is seen near Rs. 7,848, followed by Rs. 7,942. The stock will need strong buying interest to move past these levels.

The VWAP of Rs. 7,688 shows the share price is hovering near its average traded value, pointing to indecision in the market. Oracle’s market capitalisation stood at around Rs. 66,706 crore. The stock is trading below its 52-week high of Rs. 9,950, but still above the 52-week low of Rs. 7,038.

Oracle share price chart on Moneycontrol shows a loss of 0.74% at 2.10 PM:

Valuation and Financial Metrics

Oracle’s TTM EPS was Rs. 280.56, showing year-on-year growth of just over 6%. The stock traded at a P/E of 27.32, which is slightly below the sector average of 29.85. This suggested that valuations are not stretched but also not cheap.

The price-to-book ratio of 9.06 reflects investor confidence in the tech giant’s long-term business. Although it also leaves little room for error if growth slows. A dividend yield of 3.46% offers some comfort to long-term investors during periods of volatility.

Bigger Picture: AI Push Comes With Risks

Oracle’s push into AI and cloud infrastructure is part of a wider trend across the tech industry. However, recent events show that rapid expansion comes with funding risks. Reports indicate Oracle is also exploring options such as asking customers to offer their own hardware. This move could reduce capital pressure but may impact customer relationships.

The company is also considering selling non-core assets, including parts of its healthcare software business, to strengthen its balance sheet. These steps point to a clear focus on protecting cash flow while continuing long-term growth plans.

Also Read: Stock Market Today: Sensex Gains 240 Points, Nifty 24,850 Amid Budget 2026 Volatility

What Investors Should Watch Next

In the near term, Oracle stock may continue to be volatile. Markets wait for official clarity on layoffs, funding plans, and data centre expansion timelines. Any confirmation from the company could act as a strong trigger for the stock, either positively or negatively.

For long-term investors, Oracle’s strong earnings base, dividend yield, and position in cloud services are key positives. However, funding discipline and execution will be critical as the company navigates its costly AI ambitions.

Also Read: How to Choose Profitable Stocks in 2026: A Complete Guide

FAQs

1. Why is Oracle's stock price dropping today?

Oracle's stock price is declining due to reports that the company may cut 20,000–30,000 jobs. Investors are concerned about the high costs of AI data centres and banks pulling back on funding, which is making people sell more and trade more cautiously.

2. Why is Oracle planning layoffs?

Oracle is planning major layoffs to cut costs and address rising costs. The business is spending a lot on AI and cloud data centres. Cutting jobs could help free up cash when the company is under financial stress and needs more capital.

3. Is Oracle having trouble with its AI data centre plans?

Yes, reports say Oracle is having trouble raising capital for its AI data centre expansion. Some banks don't want to lend, which makes people wonder if the business can easily support its big investment plans in the coming years.

4. Should investors be worried about Oracle shares?

Investors are worried because they don't know about layoffs, funding, and future spending. Oracle has regular earnings and dividends, but short-term pressure might continue until the business gives clear updates on costs and its growth plan.

5. Is Oracle stock still a good long-term investment?

Oracle remains strong in cloud services and continues to turn a steady profit. However, long-term investors should monitor how the business controls costs and manages its AI growth without harming cash flow or business stability.