Movement Alert|Oracle Falls 3.3% in Regular Trading, Force Majeure Notice Continues to Ripple as Founder Pledges Additional Shares for Personal Loans

Market Focus
Sep 28

On September 28, Oracle fell 3.3% in regular trading, trading at $135.375/share, with turnover of $5.0 billion. The decline reflects ongoing market fallout from two converging concerns: the company's force majeure notice on a major data center project and founder Larry Ellison's expanded stock pledge.

Oracle previously issued a force majeure notice to developer Stack Infrastructure regarding its Project Jupiter data center in New Mexico, seeking to defer payments should the facility fail to come online as planned by 2028. The project has encountered permitting delays, local opposition, and environmental lawsuits that paused its air permit application. Morgan Stanley noted the notice is prompting investors to reassess loan and lease contract terms across the AI data center financing market, with related bond spreads widening sharply and five-year credit default swap costs surging to record highs. Oracle-linked data center loans totaling approximately $18 billion reportedly trade at 89 to 91 cents on the dollar.

Simultaneously, Ellison pledged approximately 67 million additional Oracle shares — a 19% year-over-year increase worth roughly $9.2 billion — as collateral for personal loans, partly tied to the Paramount Skydance acquisition of Warner Bros. Discovery. The combined developments have intensified concerns over Oracle's capital chain resilience.

(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.)

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