Why Oracle (ORCL) Shares Are Trading Lower Today

What Happened?

Shares of enterprise software giant Oracle (NYSE:ORCL) fell 5.5% in the afternoon session after a report revealed the company's artificial intelligence cloud business operated with very thin profit margins and lost nearly $100 million from renting out Nvidia's high-performance chips. 

According to internal documents cited in the report, the gross profit margin for this business was roughly 14%, a figure much lower than what analysts had expected. This suggested that the high costs of running the advanced chip infrastructure were weighing on profitability.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Oracle? Access our full analysis report here.

What Is The Market Telling Us

Oracle’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock gained 2.1% on the news that the company introduced new role-based artificial intelligence agents to help automate operations for its customer experience clients. 

The new AI agents were embedded within Oracle's Fusion Cloud Applications and were designed to help marketing, sales, and service leaders improve efficiency and find new revenue opportunities. The agents, which run on Oracle Cloud Infrastructure (OCI), were made available at no extra cost to existing customers. This move was part of a broader positive trend for AI-related companies in the market. The announcement aimed to help organizations scale personalized customer engagement while boosting performance and productivity by automating processes.

Oracle is up 69% since the beginning of the year, but at $280.57 per share, it is still trading 14.5% below its 52-week high of $328.33 from September 2025. Investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $4,630.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.