US Stocks Movement | Oracle (ORCL.US) falls over 5% amid another wave of layoffs during massive AI investment

According to Golden Ten Data APP, on Monday, Oracle (ORCL.US) fell over 5%, closing at $142.44. According to reports, Oracle has initiated a new round of layoffs, with some teams seeing layoff rates reach double digits. This round of layoffs had already been brewing internally, with the main goal of reducing salary costs to support the company's continuously expanding investment in AI infrastructure. Oracle’s total headcount for fiscal year 2026 has already decreased by 21,000 employees, about 13%, with the headcount before this round of layoffs at approximately 141,000. Meanwhile, the company is making significant investments in building data centers; first-quarter capital expenditures reached $28.5 billion, up from $8.5 billion in the same period last year, and Oracle is maintaining its forecast of $90–95 billion in capital spending for fiscal year 2027.

JPMorgan analyst Sanjit Singh maintained a “Neutral” rating and a $210 price target for Oracle in the latest report. JPMorgan stated that the gross margin and free cash flow conversion of the AI infrastructure business are key variables determining whether Oracle’s valuation can shift from “Neutral” to “Overweight.”