Oracle’s Shares Drop 11.5% on Debt Concerns Over AI Data Center Build-Out
Oracle’s shares fell 11.45% over the past month, trading between $118.86 and $345.72 in the last 52 weeks and closing at $153.97 on February 17, 2026. An investor letter flagged concerns that debt used to finance Oracle’s AI data center expansion could undermine cash flow and credit metrics.
1. Investor Letter Highlights Oracle
An investor letter from a sustainable economy fund spotlighted Oracle’s enterprise cloud infrastructure and AI-driven data center strategy, praising its sustainability profile while noting a recent pullback in share performance.
2. Share Price and Valuation Metrics
Over the last month Oracle’s stock returned –11.45%, trading between $118.86 and $345.72 in the prior 52 weeks, and closed at $153.97 on February 17, 2026, implying a market capitalization near $442.5 billion.
3. Debt-Fueled AI Expansion Concerns
The letter warned that Oracle may be accumulating excessive debt to finance AI data center build-outs in partnership with OpenAI, raising questions about potential erosion of cash flow and debt servicing capacity.
4. Hedge Fund Positioning
At the end of Q3, 122 hedge fund portfolios held Oracle shares, down from 124 the previous quarter, keeping the company outside the top 30 most popular hedge fund holdings.