Oracle Shares Slip Again as Traders Await OpenAI Funding News and Japan Cloud Deal

Oracle Corp. (ORCL) saw its stock slide for the fifth consecutive session on Tuesday, leaving the share price about 16.5% lower than it was five trading days ago. The decline hasn’t gone unnoticed – yet on the social platform Stocktwits a handful of retail traders are still waving the "extremely bullish" flag, hoping a new catalyst will turn the tide.

The two stories that dominate the conversation are very different in flavor but equally important for Oracle’s future. First, the Financial Times reported that the Japanese government is still weighing a sovereign‑cloud contract – an “air‑gapped” data‑center solution meant for highly sensitive public data. Oracle is reportedly in the lead against Amazon Web Services, Microsoft and Google, but a final decision has yet to be announced. Should the deal close, it could inject a sizable boost to Oracle’s cloud narrative, especially as the company tries to revive its position in the highly competitive infrastructure market.

Second, there’s buzz around OpenAI, one of Oracle’s marquee AI customers. Sources say OpenAI is in early talks for a private funding round that would value the startup at roughly $1.2 trillion – about a 41 % jump from the $850 billion valuation of its March round. For Oracle, a larger OpenAI valuation matters because the software giant has been pouring billions into data‑center capacity designed to host OpenAI’s workloads. First‑quarter capital expenditures hit $28.5 billion, and the firm has signaled that fiscal‑2027 capex could climb as high as $95 billion.

Amid the market jitters, Oracle also announced another round of layoffs this week. Employees posted termination notices on LinkedIn, Reddit and Blind, reminding investors that the company is still dealing with the fallout from a 13 % workforce reduction – roughly 21,000 jobs – that took place during the fiscal year that ended in May 2026.

Traders on Stocktwists have been vocal about the mixed signals. One user wrote, “$ORCL – get ready for news confirming Japan selecting Oracle for the sovereign‑cloud contract.” Another pointed out that Chairman Larry Ellison abruptly cancelled a planned $7.5 billion share sale, interpreting the move as a tactical PR effort to protect an already‑softening price.

Speculation about OpenAI’s long‑term plans also surfaced. A participant noted that OpenAI hinted at a possible IPO in the fall of 2026, but the CEO later pushed the timeline back to 2027. If the AI‑focused company does go public, Oracle could see its stock rally as investors reassess the value of the partnership.

In short, Oracle’s stock is caught between a rock – heavy AI‑related spending and a still‑uncertain cloud win in Japan – and a hard place – ongoing cost‑cutting and a need for fresh investor confidence. The next few weeks may well decide whether the bearish trend continues or if one of those catalysts finally flips the script.