Oracle's Stock Crash Has Cost Larry Ellison $213 Billion in 10 Months. Should Investors Buy the Dip?

Oracle has crashed more than 50% from its peak over the past ten months, wiping $213 billion from co-founder Larry Ellison's net worth. The sell-off stems from investor skepticism over the company's aggressive AI data center capital expenditure strategy and concerns about returns on those investments.

The cloud giant reported a record $638 billion in remaining performance obligations, reflecting strong demand for its infrastructure services. However, the positive booking metric hasn't been enough to offset market anxiety about spending discipline. A credit rating downgrade to near-junk status has amplified concerns about Oracle's balance sheet strength amid its infrastructure buildout.

The stock's 50%-plus decline represents one of the steepest corrections among large-cap enterprise software names this cycle, even as demand for AI-adjacent cloud infrastructure continues to grow across the sector.