Oracle has faced a significant market backlash following its announcement of a $300 billion deal with OpenAI, with its stock losing over $315 billion in value since September 10. The market has been quick to react to the deal, with investors expressing skepticism about its potential returns. Analysts have pointed out that the decline in Oracle’s stock is largely due to the high valuation of the deal, which may not be justified by its long-term potential.
Despite the deal being touted as an ‘astonishing’ opportunity, the market reaction has been negative. This has raised concerns about the potential impact on Oracle’s financial health, with some investors questioning whether the deal will deliver the expected returns. The situation has also sparked discussions about the risks associated with large scale investments in emerging technologies.
The decline in Oracle’s stock is not entirely isolated, as other stocks in the technology sector have also experienced similar fluctuations. Analysts are calling for a more in-depth analysis of the deal’s potential risks and rewards, and are urging investors to carefully consider their positions in light of the current market conditions.