Oracle's stock fell 3.9% to a low of $152.88 on Tuesday, February 17, 2026. Investors expressed concern over the company's substantial, debt-funded capital expenditures for AI and data center expansion.
Multiple law firms are pursuing securities fraud class-action lawsuits against the company. The litigation alleges Oracle made misleading statements regarding its ability to convert AI spending into immediate revenue growth.
Some analysts view the sell-off as a buying opportunity due to Oracle's large AI backlog. The company recently secured an $88 million task order from the U.S. Department of the Air Force.
Market sentiment currently prioritizes immediate spending risks and legal challenges over long-term AI strategy.