Oracle’s stock slides after earnings as AI costs spook investors, dragging crypto lower

Oracle’s stock plunged nearly 11% following its fiscal Q2 2026 earnings report on December 10, 2025, wiping out over $80 billion in market value. Investors were shocked by the company’s $12 billion capital expenditure for the quarter—three times higher than the same period last year and 50% above analyst forecasts. The company’s revenue of $16.1 billion narrowly missed expectations of $16.2 billion, while its long-term debt ballooned to $99.6 billion, a 25% increase year-over-year. This means Oracle carries over $6 in debt for every $1 of quarterly revenue, raising concerns about financial sustainability. Oracle has been aggressively investing in AI cloud infrastructure, including a multi-year partnership with OpenAI, to position itself as a key player in AI workloads. However, the high spending and debt levels have spooked investors, leading to a broad selloff in AI-related stocks and crypto markets. The ripple effects included Nvidia and other AI-linked stocks under pressure, while Bitcoin dropped below $90,000. Institutional investors, already cautious, likely reduced exposure across asset classes due to Oracle’s underperformance. Analysts will closely monitor Oracle’s debt trajectory and future AI spending, as the company’s aggressive investments could continue influencing market sentiment. The $12 billion capex quarter serves as a warning for investors about the financial risks of AI infrastructure buildouts.