Oracle’s AI Hype Faces Reality Check as Shares Tumble

A recent “Sell” recommendation from investment bank Rothschild & Redburn has triggered a sharp sell-off in Oracle shares, casting doubt on the software giant’s standing as a primary beneficiary of the artificial intelligence boom. The stock fell approximately 5% following the report, which argued that the revenue potential from Oracle’s cloud business has been “significantly overestimated.” This decline extends a downward trend that has pulled the share price around 16% below its recent peak.

The bearish assessment presents a stark contrast to the investor enthusiasm that surrounded Oracle just weeks ago. In early September, the company reported first-quarter results for its 2026 fiscal year that featured a staggering 359% surge in remaining performance obligations, which climbed to $455 billion. This massive backlog was largely... Read more...