Oracle Shares Plunge Amid Security Crisis and Debt Concerns

Oracle Corporation is facing a severe market downturn as investor confidence erodes. The technology giant's stock experienced significant selling pressure following two major developments: the discovery of a critical security vulnerability and reports of substantial new debt issuance plans. This combination has triggered the steepest decline since September's peak, with shares falling approximately 40% from their record high.

Beyond the immediate security concerns, Oracle's financial strategy is drawing increased scrutiny from market participants. According to recent reports, the company is preparing to issue up to $38 billion in new debt to fund expensive expansions in its artificial intelligence data center infrastructure. This substantial borrowing comes at a time of elevated interest rates, amplifying concerns about the company's financial health.

The planned debt issuance would add to an already substantial burden, with adjusted net debt already approaching $100 billion. Investors appear to be losing faith in the "build at any cost" approach, particularly as competitors like Alphabet (Google) have demonstrated stronger recent performance in similar initiatives.

Critical Security Flaw Sparks Government Warning

The most immediate catalyst for the sell-off emerged from U.S. government cybersecurity authorities. The Cybersecurity and Infrastructure Security Agency (CISA) issued an urgent alert regarding an actively exploited vulnerability in Oracle's Identity Manager software. This security gap carries a severity rating of 9.8 out of 10, classifying it as extremely critical.

Should investors sell immediately? Or is it worth buying Oracle?

The vulnerability presents a worst-case scenario for enterprise security, potentially allowing attackers to gain control over central identity management systems without requiring authentication. Market reaction was swift and severe, with unusually high trading volumes suggesting institutional investors were leading the selling activity.

Technical Breakdown Signals Continued Pressure

The market's anxiety manifested clearly in Friday's trading session, where Oracle shares closed down 5.89 percent at €172.00. This decline pushed the stock below crucial technical support levels, indicating sustained downward momentum. The dramatic shift in sentiment has also significantly impacted founder Larry Ellison, whose personal wealth has substantially diminished since the September peak.

Looking ahead, market experts see little near-term relief unless the company can quickly resolve the security concerns. Several analysts are warning of additional declines if Oracle fails to adequately address these operational vulnerabilities. All attention now turns to the upcoming quarterly results scheduled for early December, which will serve as a critical test for management's ability to stabilize the situation and halt the current downward spiral.