Oracle (ORCL) Fell Due to Investors' Concerns About Its Aggressive Spending Plans

Munro Partners, an investment management firm, released its “Munro Global Growth Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the December quarter, the Fund returned -0.7%. The Fund’s long positions contributed to the performance, while short positions, hedging, and currencies detracted. Global equity markets delivered solid performance in 2025. US markets posted strong gains in the quarter, with the S&P 500 up 2.4% and the Nasdaq up 2.3%. Europe and Japan were among the stronger performance contributors. For more information on the Fund’s best picks in 2025, please check its top five holdings.

In its fourth-quarter 2025 investor letter, Munro Global Growth Fund highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) weighed on the Strategy's performance in the quarter. Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 7.54%, and its shares gained 21.36% of their value over the last 52 weeks. On January 14, 2026, Oracle Corporation (NYSE:ORCL) stock closed at $193.61 per share, with a market capitalization of $556.267 billion.

Munro Global Growth Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth quarter 2025 investor letter:

"Key detractors from performance for the quarter included Oracle Corporation (NYSE:ORCL) (Digital Enterprise), Rheinmetall (Security) and Coreweave (High-Performance Computing). Oracle shares fell during the quarter as the market scrutinized their ability to fund the company’s aggressive spending plans, given Oracle is heavily linked to OpenAI, who in turn is only generating a small amount of revenue today relative to their medium-term spending plans. Coreweave is effectively an enabler for Oracle to be able to deliver on its computing ambitions, and therefore also declined over the quarter."

Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, which was 124 in the previous quarter. In the second quarter of fiscal 2026, Oracle Corporation (NYSE:ORCL) reported total revenues of $16.1 billion, up 14% compared to last year’s comparable quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of must-watch AI stocks on Wall Street. Mar Vista U.S. Quality Strategy reduced its stake in Oracle Corporation (NYSE:ORCL) in Q4 2025. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.