Oracle shares have tumbled almost 50% from their October peak, erasing roughly $424 billion in market capitalization as the stock slid from an implied high of $935 billion to about $511 billion today. The sell-off accelerated following management’s cautious commentary about slowing cloud-infrastructure growth and ongoing investments in AI capabilities. Institutional investors have rotated out of traditional enterprise software names, questioning Oracle’s ability to sustain revenue expansion amid intensifying competition from hyperscalers such as AWS and Azure. Meanwhile, Oracle’s announced buyback of $30 billion in shares over the past year has provided some support, but growing concerns over margin pressure from rising R&D and data-center operating costs have kept sentiment subdued. Analysts are now revising 2026 earnings estimates downward by an average of 8%, while forecast price targets range from a bearish view near current levels to more bullish scenarios assuming Oracle can leverage its autonomous database and AI-enhanced applications to regain revenue momentum.