Oracle shares fell for a fifth straight session on Tuesday even as chip stocks tied to OpenAI rebounded, extending a five-day slide to 13.6%. A day earlier, the company began a new round of layoffs, and its finance chief used a companywide meeting to argue against cutting costs at the expense of employees.
Oracle stock dropped another 3.1% on Tuesday, its fifth consecutive decline. The stock has lost 13.6% over the past five trading days.
Oracle misses the chip-stock rebound
Oracle's stock has been known to move in step with the ups and downs of OpenAI's news cycle. Shares of companies that sell products or services to OpenAI broadly fell on Monday after its leaders and those of other prominent AI companies called for more responsible model development. Chip stocks linked to OpenAI rebounded on Tuesday, but Oracle failed to join the bounce and extended its losses instead.
CFO addresses layoffs at town hall
The remarks came a day after Oracle began a new round of layoffs, following cuts earlier this year. The company's workforce declined by 21,000, or 13%, in the fiscal year that ended May 31.
Chief Financial Officer Hilary Maxson told employees on Tuesday they should be proud of the company's financial results and protect that success as the company grows. According to Business Insider: "doing more with less, which is a phrase that I really, really don't like", Maxson said, adding that the company needed to simplify processes that don't help customers.
Oracle reported $28.5 billion in first-quarter capital expenditures, up from $8.5 billion a year earlier. The company maintained its fiscal 2027 capital expenditure forecast at $90 billion to $95 billion. Neither Maxson nor other executives addressed the layoffs directly during the town hall, instead emphasizing growth and customer demand.
Sources: MarketWatch (snippet-based), Business Insider
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