Why Is Oracle Stock Falling on Monday?

Oracle Corp. (NYSE: ORCL ) stock continues to face downward pressure on Monday as traders weigh the technology firm’s rising debt burden against its extensive artificial intelligence infrastructure investments.

For context, the Nasdaq is up 1.15% while the S&P 500 has gained 0.43%.

In a recent podcast episode of Prof G Markets, co-host Ed Elson modeled a worst-case scenario where OpenAI could face annual losses of $165 billion by 2030 under specific revenue and pricing declines.

According to figures cited by host Scott Galloway, S&P recently downgraded Oracle’s debt, explicitly citing OpenAI as a key credit risk for the hardware and software company.

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The company previously reported that quarterly capital expenditure climbed to $16.49 billion, contributing to a 162% increase in full-year capital expenditures to $55.7 billion.

Furthermore, BNP Paribas analyst Stefan Slowinski previously noted that fiscal 2027 capital spending could reach between $80 billion and $100 billion as the company accelerates non-Abilene Stargate campuses under new CFO Hilary Maxson.

Record Revenue Backlog Fails to Halt Sell-Off The ongoing stock retreat occurs despite a record backlog, with Remaining Performance Obligations jumping by $85 billion in the fourth quarter to $638 billion.

While Oracle’s full-year revenue climbed to $67 billion, the company indicated in its guidance that it expects to raise more than $40 billion through a combination of debt and equity this year.

This projected fundraising has driven up borrowing costs, pushing the yield on Oracle’s 2052 bonds to 7.6% and its 2050 bonds to 7.34%.

Technical Analysis Oracle is still in a pronounced downtrend on a multi-month view, with the stock down 49.84% over the past 12 months and sitting right on top of its 52-week low zone ($121.50).

It’s also trading 14.2% below its 20-day SMA, 31% below its 50-day SMA, and 35.9% below its 200-day SMA—classic "below all key averages" behavior.

The moving-average structure remains bearish: the 20-day SMA is below the 50-day SMA, and the death cross (50-day SMA below the 200-day SMA) has been in place since January.

RSI is the cleanest momentum read right now, sitting at 26.55—oversold and consistent with the recent slide into a July swing low.

RSI measures how stretched the move is, and readings below 30 often signal downside exhaustion risk, but they don’t guarantee a reversal without follow-through buying.

Key Resistance: $142.56 Key Support: $121.50 ORCL Price Action: Oracle shares were down 3.17% at $122.40 at the time of publication on Monday.

The stock is trading near its 52-week low of $121.50, according to Pro data.

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