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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid growing market skepticism regarding the sustainability of massive AI capital expenditures, Oracle Corporation faced significant selling pressure that drove its stock to new lows. According to reports, Oracle shares touched a 52-week low of $121.50 on Friday, trading approximately 63% below their record peak. This decline follows a move by S&P Global Ratings to cut the company's credit rating to BBB- earlier this month, leaving the software giant's debt just one notch above speculative-grade or "junk" status.
The downgrade reflects broader sector concerns as mega-cap tech firms struggle to justify aggressive infrastructure spending. Per market data, peers like Microsoft and Alphabet have also faced volatility linked to AI ROI concerns. Recent financial filings show Oracle has significantly increased its leverage to fund AI data center expansions, a factor cited by analysts as a primary driver for the weakened credit profile relative to its industry peers.
Oracle (ORCL) settled at $126.41 at the close of July 17, 2026, after recovering slightly from its intraday low of $121.50. Investors are now focused on whether the stock can maintain this support level or if the credit downgrade will trigger further institutional outflows. Looking ahead, upcoming speeches from Fed officials, including Governors Bowman and Waller, will be closely monitored for insights into interest rate paths that impact Oracle's borrowing costs under its new credit rating.