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Oracle Stock Crashes As AI Spending Spirals Out Of Control!

Oracle rarely surprises Wall Street. This time, it did. After reporting another quarter of strong cloud growth, Oracle’s stock fell sharply by more than 10% in a single session, a rarity for a low-beta company. The sell-off had little to do with demand. It had everything to do with timing, cash flow, and patience. Investors are struggling with one central issue: Oracle AI spending triggers stock crash because the returns are arriving much later than the bills. Oracle is pouring billions into AI-focused data centers to serve customers like OpenAI, Meta, Nvidia, and xAI. Bookings are exploding. Backlog is massive. But profits are not showing up yet. Capital spending surged. Free cash flow turned deeply negative. Debt climbed. Management asked investors to wait until fiscal 2027 for meaningful revenue payoff. In today’s market, that wait feels long. This tension explains the sharp drop in shares.