On August 12, Oracle rose 5.44% in regular trading, trading at $150.92/share, with turnover of $7.93 billion. The stock rallied on reports that the company has drawn up a new round of layoffs expected to be implemented this month, with some business teams potentially facing double-digit percentage reductions.
The market interpreted the move as Oracle proactively compressing costs to support massive AI infrastructure capital expenditure. Notably, Oracle had already cut approximately 21,000 full-time positions in the prior fiscal year, reducing total headcount by 13% to 141,000, incurring $1.84 billion in severance costs. The company has explicitly stated that AI technology adoption contributed to job eliminations. Meanwhile, Oracle has secured multiple large data center partnerships with OpenAI and Meta as it races to catch Amazon and Microsoft in cloud computing, though aggressive borrowing led S&P to downgrade its credit rating from BBB to BBB-, with default risk indicators briefly surpassing historical peaks.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)