US Stock Market Move | Oracle Corporation (ORCL.US) falls over 5% as a new wave of layoffs hits amid heavy AI investment

On Monday, Oracle Corporation (ORCL.US) fell over 5% to $142.44. On the news front, it was reported that Oracle Corporation has launched a new round of layoffs, with some teams potentially seeing cuts in the double-digit percentage range. The layoffs had been brewing internally and are mainly aimed at reducing salary costs to support the company's continuously expanding AI infrastructure investment. Oracle Corporation's total headcount for fiscal year 2026 has already decreased by 21,000, a reduction of about 13%. Before this round of layoffs, the company's workforce was approximately 141,000. At the same time, the company is aggressively building data centers, with capital expenditure reaching $28.5 billion in the first fiscal quarter, up from $8.5 billion in the same period last year, and it maintains its capital expenditure forecast of $90 billion to $95 billion for fiscal year 2027. Morgan Stanley analyst Sanjit Singh maintained a "Neutral" rating and a $210 price target on Oracle Corporation in his latest report. Morgan Stanley said that the gross margin and free cash flow conversion of the AI infrastructure business are the key variables determining whether Oracle Corporation's valuation can shift from "Neutral" to "Overweight."