Oracle’s stock got slammed with a 7% drop on Friday, the company’s worst single-day loss since January, just one day after laying out a flashy new AI-driven roadmap at its Las Vegas AI World conference.
This brutal reversal came even as the S&P 500, Nasdaq, and Dow Jones Industrial Average all finished the day solidly in the green, with the Dow jumping 345 points and tech climbing steadily throughout the session.
The sell-off followed an overly ambitious forecast delivered by Oracle’s executives on Thursday, where they claimed the company would hit $225 billion in total revenue and pull in $166 billion from cloud infrastructure alone by fiscal 2030.
That’s up from just $18 billion expected in 2026. Oracle also projected $21 in adjusted earnings per share, implying over 31% annual revenue growth. Initially, investors were impressed.
So ORCL surged by 3.1% Thursday, capping a two-year run that’s more than doubled Oracle’s market cap. But by Friday morning, reality kicked in, and so did the doubts.
Traders buy the dip on banks as Oracle faces tough questions
While Oracle bled out, the rest of the market rebounded from Thursday’s banking mess. The Dow climbed 0.8%, and both the S&P 500 and Nasdaq Composite gained 0.7%.
According to CNBC, the broader rally got a push from Treasury Secretary Scott Bessent, who said he’d speak with his Chinese counterpart Friday night.
Meanwhile, President Donald Trump, speaking from the White House, confirmed a meeting with President Xi Jinping was still on track for later this month, as Cryptopolitan reported. That helped take the edge off fears over 100% tariffs that were supposed to hit Chinese goods on November 1.
The rebound came just a day after the Dow tanked 300 points, with the S&P 500 down 0.6% thanks to a brutal banking sell-off. The SPDR S&P Regional Banking ETF (KRE) lost over 6%, continuing a four-week losing streak triggered by fresh stress in regional lenders.
Tricolor and First Brands, two auto-linked companies, recently filed for bankruptcy, raising new fears about loan exposure. By Friday, KRE had bounced back 1.5%, though still off 2% for the week.
Oracle’s AI ambition rattles confidence despite big numbers
Despite the crash, Oracle remains neck-deep in the AI infrastructure boom. The company announced a five-year, $300 billion deal with OpenAI to supply AI chips and cloud compute.
After its September earnings report, Cryptopolitan reported that ORCL rallied hard in what became its best trading day since 1992, driven by news of $455 billion in remaining performance obligations, up 359% year-over-year. On Thursday, execs also said AI-related margins would sit between 30% and 40%, higher than most expected.
But skepticism quickly caught up. Karl Keirstead, analyst at UBS, raised his price target to $380 from $360, arguing the stock’s current price, $291.37, doesn’t reflect the full AI upside. But Karl also warned about over-reliance on OpenAI, and flagged “go-live bottlenecks” as a real threat if Oracle pushes expansion too aggressively.
Still, Clay Magouyrk, one of Oracle’s newly appointed co-CEOs, pushed back hard against the idea that OpenAI is the company’s only AI partner.
“None of those customers are OpenAI,” Clay said, referencing seven new contracts signed this quarter across four different clients. “I know some people are questioning sometimes, ‘Hey, is it just OpenAI?’ The reality is, we think OpenAI is a great customer, but we have many customers.”
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