Stock Market Today, Nov. 4: Oracle Falls on Canceled $7 Billion Tencent Chip-Leasing Deal

Oracle (NYSE:ORCL), an enterprise cloud software and AI infrastructure provider, closed at $123.77, down 1.92%. In premarket trading, reports that it canceled a $7 billion Tencent chip-leasing deal and renewed attention on AI funding plans weighed on the shares.
Trading volume reached 111.4M shares, coming in about 241% above its three-month average of 32.7M shares.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) closed at 7,689, up 1.59%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) ended at 25,737, up 1.44%. Among enterprise software and cloud infrastructure peers, Microsoft closed at $555.80, up 6.68%, and SAP closed at $240.05, up 4.23%, keeping Oracle's relative weakness in focus.

What this means for investors

Although Oracle stock is down today, it seems to have fared well in its Wednesday performance, given the circumstances it faced. Aside from the cancellation of the Tencent deal, many data center stocks plunged as several politicians opposed to data center development won in the 2026 Midterm elections.

However, the issues that might affect companies like CoreWeave or Nebius appear to not apply directly to Oracle, as it has legacy businesses that should bolster the company. Investors may notice the 1.9% stock price decline was far less than the neocloud companies.

Moreover, its condition presumably makes it easier to raise cash, as Oracle also completed a $20 billion stock and debt offering. Although debt and coupons sold at a yield as high as 8.65%, that is much lower than some neocloud stocks, whose debt yields have risen well into the teens.

Additionally, Oracle expressed an intention to limit additional capital-market funding to $20 billion through fiscal 2030, implying no additional fundraising for the next few years. That may offer relief to some investors in the cloud stock who feel its debt burden has become too high.

For now, Oracle stock trades near a 52-week low. However, it has shown a continued ability to raise funds, and assuming it keeps its word not to raise additional funds until after fiscal 2030, it is in a stronger position to eventually win back the confidence of investors.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Oracle, and Tencent. The Motley Fool has a disclosure policy.