Oracle (ORCL) Stock: $10 Billion Partner Blue Owl Walks Over Debt Fears

TLDR

• Oracle shares plunged 5.4% Wednesday after Blue Owl Capital abandoned a $10 billion data center partnership
• The stock has crashed nearly 50% since its September 10 peak due to mounting debt concerns
• Oracle’s troubles pulled down Broadcom, Nvidia, and AMD, sending the Nasdaq down 1.81%
• Questions persist about potential delays in Oracle’s OpenAI data center projects
• Bank of America warns an AI bubble is building even as the trade could run into 2026

Oracle’s debt problems just went from a stock price issue to a project execution problem. Blue Owl Capital walked away from a massive $10 billion data center deal, citing debt terms that just didn’t work.

The Financial Times broke the news, and investors didn’t like it. Oracle stock dropped 5.4% on Wednesday. The company has now lost nearly half its value since September 10.

Oracle Corporation, ORCL

This is what happens when debt levels get too high. Partners start getting cold feet. Blue Owl apparently looked at Oracle’s books and decided the risk wasn’t worth it.

The timing couldn’t be worse. Bloomberg reported last Friday that Oracle might delay data center completions for OpenAI. Oracle denied it, but the market isn’t buying the denials.

Month-to-date, Oracle is down more than 11%. That’s a brutal stretch by any measure.

Tech Stocks Take a Hit

Oracle didn’t fall alone. When a major cloud player stumbles, it drags others down with it. Broadcom took a hit. So did Nvidia and Advanced Micro Devices.

The broader indexes felt the pain too. The S&P 500 fell 1.16%. The Dow Jones Industrial Average dropped 0.47%.

The Nasdaq Composite had its worst day in almost a month, losing 1.81%. AI stocks are showing cracks, and Oracle’s debt situation isn’t helping the narrative.

The AI Bubble Question

Bank of America put out an interesting note. They think AI stocks could keep running through 2026. But here’s the catch: they also think a bubble is forming.

That’s the tricky part about bubbles. They’re easy to spot in hindsight, nearly impossible to time in real-time. Bank of America knows this. They’re basically saying the music is still playing, but someone’s going to be left without a chair.

What This Means for Oracle

The Blue Owl exit is a concrete example of Oracle’s debt problems causing real-world consequences. This isn’t just about stock charts anymore. It’s about whether Oracle can actually execute on its data center buildout plans.

Financing partners are essential for these massive projects. When one walks away, others take notice. Oracle needs to prove it can manage its debt load while still delivering on its infrastructure promises.

The company’s September peak feels like a distant memory now. At nearly 50% down, Oracle is testing investor patience. The OpenAI data center questions aren’t going away either.

Blue Owl Capital’s decision to pull out of the $10 billion data center project represents the latest challenge for Oracle as debt concerns continue to pressure the stock.

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