Why is Oracle stock falling 4% today?

Oracle shares ORCL fell 4.2% on Monday after co-founder Larry Ellison reversed plans to sell as much as $7.5 billion (approx. ₦10.4 trillion) of his stake, while the company faces rising debt and another round of layoffs linked to its artificial intelligence infrastructure spending.

Oracle said Saturday that Ellison had abandoned the planned sale, one day after the company disclosed his trading plans.

The company said, “No Oracle stock was sold under that plan, and he has no other plans to sell any of his Oracle stock.”

The development came after a Friday securities filing revealed that Ellison had adopted a plan on June 22 to sell as many as 50 million Oracle shares, valued at roughly $7.5 billion (approx. ₦10.4 trillion) based on recent prices.

The filing said the sales were expected to be completed by Oct. 24.

Ellison has maintained a substantial stake in Oracle since the 1970s and remains one of the company's largest shareholders.

However, much of his wealth is tied to the stock.

A Wall Street Journal analysis found that about 24% of Ellison's roughly $200 billion (approx. ₦277.1 trillion) net worth had been pledged as collateral.

He has also pledged more than $40 billion (approx. ₦55.4 trillion) to support his son David Ellison's hostile bid for Warner Bros. in a deal valued at nearly $80 billion (approx. ₦110.9 trillion).

Ellison previously sold nearly $900 million (approx. ₦1.2 trillion) of Oracle stock in January 2001, shortly before the company's shares fell almost 22% following lower-than-expected earnings.

He later agreed to pay $100 million (approx. ₦138.6 billion) to charity to settle an insider-trading lawsuit brought by shareholders.

Oracle ramps up AI spending and debt

Oracle is simultaneously pursuing an aggressive expansion of its AI infrastructure business.

The company plans to raise as much as $50 billion (approx. ₦69.3 trillion) this year through stock and debt sales to finance data centres designed to handle expected growth in artificial intelligence computing.

Morgan Stanley credit analysts expect Oracle will require at least another $100 billion (approx. ₦138.6 trillion) in financing during 2027 and the first half of 2028.

The company's rising debt burden has contributed to pressure on its shares this year.

Oracle stock has fallen more than 23% in 2026, while the technology-heavy Nasdaq has gained more than 13%.

Oracle reported $28.5 billion (approx. ₦39.5 trillion) in first-quarter capital expenditures, up sharply from $8.5 billion (approx. ₦11.8 trillion) a year earlier.

It also maintained its fiscal 2027 capital expenditure forecast at between $90 billion (approx. ₦124.7 trillion) and $95 billion (approx. ₦131.6 trillion).

Layoffs add to pressure on Oracle

Oracle has also started another round of layoffs, said a Business insider report citing people affected by the cuts and an email reviewed by the publication.

The company told affected employees that their positions were being eliminated as part of a broader organisational change.

Oracle's workforce had already declined by 21,000 employees, or 13%, during the fiscal year ended May 31, according to a recent filing.

Oracle had around 141,000 employees before the latest round of cuts.

The layoffs come as the company continues to spend heavily on AI infrastructure.

While Wall Street remains uncertain about whether those investments will generate sufficient returns, Oracle's latest earnings report showed some positive developments, including cloud growth.