Oracle stock continued its strong sell-off this week and is now hovering at its lowest level this year at $115 after announcing another cash raise to finance its artificial intelligence (AI) rollout. ORCL dropped to $119.2, down by over 52% from its all-time high. This sell-off may continue after forming the risky head-and-shoulders pattern.
Oracle Corporation under pressure amid the rising dilution
ORCL stock resumed its downward after the company filed a new cash raise to fund its artificial intelligence (AI) rollout. The company said that it will sell new shares worth about $10 billion and also issue $10 billion in senior notes.
The slide erased all the gains made last week when the company announced that it will make $225 billion in revenue in 2024. It also announced that it would limit its capital market funding to $20 billion, which it has now filed for.
Most notably, the company boosted its free cash flow target in the next few years as it turns to vendor financing, customer-provided hardware, and customer prepayments.
Oracle has become a highly dilutive company as it seeks to become a major player in the data center industry. It has boosted the number of outstanding shares to 3.02 billion from 2.75 billion last year.
The company has also borrowed heavily to finance its AI business. Its total debt jumped to $169 billion from $88 billion in early 2025. Analysts expect that the company will continue borrowing in the near future.
OpenAI exposure and Project Jupiter
Oracle stock has also been in a strong sell-off because of its exposure to OpenAI, the artificial intelligence pioneer. Most of its revenue backlog is tied to the company.
OpenAI’s revenue growth has slowed in the past few months as competition has intensified. Despite being the pioneer in the AI space, the company has been overtaken by Anthropic. Competition from open-weight models like Kimi and DeepSeek.
Most importantly, there are signs that OpenAI is struggling to raise capital. The company is said to have raised $11 billion from investors, well below the $30 billion it was targeting. Its valuation also dropped to $1.25 trillion, lower than the $1.4 trillion it was targeting.
Oracle is also facing major challenges in its Project Jupiter project in New Mexico. It has already issued a force majeure as it faces some key challenges, especially power permitting.
On the positive side, Oracle has continued doing well, with its revenue continuing rising. Its revenue rose by 30% in the first quarter to $19.3 billion, with its cloud revenue rising by 62%
Oracle stock technical analysis
ORCL stock chart | Source: TradingView
The weekly chart shows that the ORCL has been under pressure, moving from a high of $345 in September to the current $119.2. It has slumped below the 78.6% Fibonacci Retracement level.
The stock has dropped below all moving averages and formed a head-and-shoulders pattern. At the same time, Oracle has also stayed below the Ichimoku cloud and the Supertrend indicators.
Therefore, Oracle will likely continue falling as sellers target the support level of $100. This view will be confirmed when it drops below the key support level of $115.2.
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