Downfall of a Wall Street darling: Why Oracle shares crashed 65% from peak
- Posted on July 20, 2026
- By Business News Today
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- 1 min read
In brief
Oracle's stock has experienced a significant correction, declining 65% from its historical peak as market sentiment shifts toward scrutinizing profitability metrics. While the company demonstrates robust Oracle Cloud Infrastructure revenue and an impressive order backlog, institutional investors increasingly demand tangible evidence that substantial AI infrastructure investments translate into long-term profitable growth. This reassessment reflects broader market concerns about capital intensity and execution capabilities in the competitive cloud computing landscape.
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Downfall of a Wall Street darling: Why Oracle shares crashed 65% from peak
Oracle shares have dropped about 65% from their peak as investors shift focus from AI-driven cloud growth to rising capital expenditure, debt and execution risks. Despite strong OCI revenue and a massive backlog, markets seek proof that AI investments can generate sustainable returns.
