Oracle’s stock fell more than 12% on Thursday on growing fears about the software giant’s massive AI spending — shaving more than $30 billion off co-founder Larry Ellison’s fortune. The Texas-based tech company’s stock tumbled to $194 a share from around $223 a share at the start of trading — wiping out $90 billion in market capitalization.

Goldman Sachs analyst Kash Rangan lowered its price target to $220 from $320, while maintaining a neutral rating. Rangan cited modest reported revenue growth and noted that higher capital expenditures and free cash flow burn increased concerns over Oracle’s growing financial needs.

This correction signals a major change in market perception. The focus has shifted from praising Oracle’s ambition to examining its balance sheet.

The world of bits moves fast. The world of atoms doesn’t. And data centers are where those two worlds collide.”

Oracle and other AI stocks tumbled on Thursday after the company reported surging expenditures related to its AI data center buildout, reinforcing concerns on Wall Street about debt-fueled spending on the fledgling technology.

Follow live updates on markets and the top business, finance and economics stories.

Oracle stock drops after revealing $300 billion OpenAI partnership costs exceeded Wall Street estimates for AI infrastructure spending.

Lower- and middle-income households are feeling the squeeze of high prices following years of high inflation, along with a slowing job market. That means a roughly 25% chance of a recession, according to Barry Bannister, chief equity strategist at Stifel.

Oracle (ORCL) shares fell more than 11% in after-hours trading, following the Q2 fiscal 2026 report, a sharp repricing that seemingly contradicts the main narrative of booming AI demand.