Movement Alert|Oracle Falls 5.37% in Regular Trading, Force Majeure Notice on New Mexico Data Center Project Sparks Debt and Delay Concerns

Market Focus
Sep 24

On September 24, Oracle fell 5.37% in regular trading, trading at $138.45/share, with turnover of $8.79 billion. The sell-off was triggered by a force majeure notice issued by Oracle regarding its Project Jupiter data center campus in New Mexico, compounding existing debt and operational headwinds.

Oracle is seeking to defer payments on the massive data center project after it encountered public opposition and regulatory hurdles that could prevent the facility from coming online as originally planned in 2028. Sources indicated that Oracle does not intend to exit its role as the project's primary tenant but aims to avoid additional expenditures during the delay. The project's approximately $18 billion in associated loans have fallen to 89-91 cents on the dollar, while S&P had previously downgraded Oracle's credit rating to just one notch above junk status, with banks left holding more project debt than initially anticipated.

Adding further pressure, a leaked internal layoff document revealed that Oracle's latest workforce reduction hit its Americas cloud infrastructure organization hardest, cutting 546 employees — 7.6% of that unit — including a vice president and two senior directors. The options market has also reflected bearish sentiment, with large block trades concentrated on selling out-of-the-money calls, signaling institutional skepticism toward near-term upside.

(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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10