Oracle shares fall amid job cuts

Investing.com -- Oracle Corporation (NYSE: ORCL) shares dropped 4.4% in morning trading on Monday after the company confirmed workforce reductions affecting certain teams with cuts reaching double-digit percentages.

The job cuts add to concerns that have weighed on the stock since last week. Oracle's first quarter fiscal 2027 results showed revenue of $19.3 billion, up roughly 30% year-over-year, and earnings per share of $1.92, which beat estimates. The stock initially rose following the results but reversed sharply as investors focused on the company's deeply negative free cash flow and a fiscal 2027 capital expenditure plan of approximately $70 billion.

Morgan Stanley analyst Sanjit Singh maintained a Neutral rating with a $210 price target. Singh noted strong Oracle Cloud Infrastructure growth but pointed to structural margin pressures and cash flow concerns.

On September 12, Larry Ellison canceled a plan to sell up to 50 million shares worth approximately $7.5 billion, but the move has not stopped the stock's decline.

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