Oracle stock has plunged 64% from its September 2025 peak, erasing roughly $213 billion from founder Larry Ellison’s net worth and dropping him from second-richest person in the world to eighth, according to recent market data. The decline reflects intensifying investor concerns over the company’s massive artificial intelligence spending and mounting debt load.
The stock’s collapse accelerated in late June 2026, when Oracle posted its worst week since August 2001 during the dot-com bust. Shares fell 19% in the week ending June 27, marking the steepest weekly decline in 25 years, according to CNBC. The selloff came after the company disclosed that capital expenditures had surged 162% to nearly $56 billion in fiscal 2026, exceeding its original $50 billion guidance.
Oracle’s aggressive spending on data center infrastructure—primarily to fulfill commitments to OpenAI—has created severe balance sheet pressures. The company reported negative free cash flow of $23.7 billion in fiscal 2026 and sits on $130 billion in debt, according to Reuters. To fund continued expansion, Oracle plans to raise $40 billion through debt and equity financing in fiscal 2027, including a $20 billion share sale announced earlier, following $43 billion in debt sales and $5 billion from equity issuance in the prior fiscal year.
The capital intensity of Oracle’s AI buildout stands in contrast to its competitors. While Amazon, Microsoft, and Google are also investing heavily in data center capacity, those companies can leverage diverse technology stacks and services to offset costs. Oracle, lacking that breadth, is racing to open facilities in Michigan, New Mexico, and Texas while facing margin pressure on its lower-margin infrastructure offerings.
Wall Street remains divided on the investment thesis. According to FactSet, 71% of analysts recommend buying Oracle stock—the highest percentage in 15 years—suggesting confidence in the company’s long-term AI opportunity. However, Evercore noted that “financing/leverage and the pace of equity issuance” remain “the central investor debate near term,” even as demand signals stay strong. The company’s fiscal 2026 annual report revealed a 13% headcount reduction to 141,000 employees, with a notable pullback in sales and marketing spending.
Ellison’s wealth decline mirrors the stock’s trajectory. By mid-July 2026, his net worth had fallen to approximately $175 billion from a peak near $388 billion in September 2025, according to Forbes and Yahoo Finance Canada. The drop pushed him behind Google co-founders Larry Page and Sergey Brin, Amazon founder Jeff Bezos, and Michael Dell on the world’s richest people list.
Sources
- CNBC — Oracle’s worst week since 2001 dot-com bust, 19% weekly drop, $130 billion debt, capital expenditure details, and Ellison wealth impact
- KuCoin — Oracle stock down 64% since September 2025 peak
- 24/7 Wall St — Ellison’s $213 billion wealth decline to $175 billion
- Yahoo Finance Canada — Ellison’s net worth fall of $213 billion to $175 billion
- Forbes — Ellison’s ranking drop to eighth richest person, $175.2 billion net worth
- Reuters — Oracle’s capital expenditure of $55.66 billion exceeding $50 billion target, negative free cash flow of $23.7 billion
- The Motley Fool — Oracle stock down 58% from September 2025 peak as of July 6, 2026
