Usman Salis
⬤ Oracle (ORCL) has fallen hard from its recent peak, now sitting in a 34% drawdown from the all-time closing high it hit just over two months ago. The stock is trading around $215—still up nearly 30% year-to-date, but the downward momentum over recent weeks has been unmistakable.
⬤ Broader uncertainty around potential federal tax changes isn't helping. There's talk in Washington about higher corporate tax rates and narrower deductions for high-margin tech companies, which could squeeze cash flow across the industry. Analysts worry that heavier tax burdens might trigger restructuring, slower investment, or even talent flight—especially in software and cloud businesses that depend on specialized technical teams.
⬤ Investors are reacting not just to market-wide weakness but also to the policy fog hanging over corporate profitability. The speed of Oracle's reversal—after climbing so strongly earlier in the year—shows just how sensitive tech valuations are to macro shifts and sentiment swings.
⬤ The chart tells the story clearly: a steady slide from early September highs down to current levels near $215. Oracle remains a heavyweight in enterprise software and cloud services, but this pullback highlights how quickly repricing can happen when policy expectations and market sentiment shift. Until there's clearer direction on tax changes and the broader economic picture, expect volatility to stick around.
Usman Salis
