One of OpenAI’s largest data center partners, with whom it recently signed a multi-year, multi-billion dollar deal, is coming under increasing pressure amid increasing attention to the same deal.
The share in question is Oracle Corp. (NYSE:ORCL)which, after soaring to dizzying heights a few months ago, thanks to its $300 billion deal with OpenAI, has witnessed a precipitous decline, falling more than 45% from its 52-week high just three months ago, with Momentum scores falling along with it.
Oracle’s momentum is fading
The Momentum score in Benzinga’s Edge Rankings primarily indicates a stock’s strength relative to all other stocks, and is calculated based on price movement and volatility over multiple time frames before ranking as a percentile relative to others.
See also: Oracle shares fall after mixed Q2 earnings: 438% RPO growth, company emphasizes cloud, chip ‘neutrality’
Oracle Corp.
Technology giant Oracle has witnessed a steep drop in its Momentum scores from 74.62 to 32.05 within a week, as the stock has continued to fall this week, down 15% over the past five trading days.
This comes as concerns grow over OpenAI’s ability to execute the deal amid reports of delays in its massive AI data center buildout linked to labor and material shortages. It is expected that some facilities will come online later than originally planned, in 2028, instead of 2027.
For Oracle, this means further complications and delays in realizing its massive $523 billion order book in sales, even as capital expenditures continue to increase.
The share scores poorly Benzinga’s Edge Stock Rankingswith unfavorable price developments in the short, medium and long term. Click here for deeper insights on the stock, its peers and competitors.
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