This OpenAI Data Center Partner Is Beginning To Fizzle Out: Momentum Score Drops

One of OpenAI’s biggest data center partners, with whom it recently signed a multi-billion-dollar, multi-year deal, is increasingly under pressure amid growing scrutiny of the same deal.

The stock in question is Oracle Corp. (NYSE:ORCL), which, after rallying to dizzying heights just a few months ago, riding on its $300 billion deal with OpenAI, has witnessed a steep pullback, dropping over 45% from its 52-week high just three months ago, with its Momentum scores dropping with it.

Oracle’s Momentum Fades

The Momentum score in Benzinga’s Edge Rankings primarily indicates the strength of a stock relative to all other stocks, and is calculated based on price movements and volatility across multiple time frames, before being ranked as a percentile against others.

See Also: Oracle Stock Drops On Mixed Q2 Earnings: RPO Growth Of 438%, Company Stresses Cloud, Chip ‘Neutrality’

Oracle Corp.

Tech giant, Oracle, has witnessed a steep slide in its Momentum scores from 74.62 to 32.05 within the span of a week, as the stock continued to drop this week, down 15% over the past five trading days.

This comes as concerns grow over OpenAI's ability to execute on the deal, amid reports of delays in its massive AI data center buildout tied to labor and material shortages. Some facilities are now expected to come online later than originally planned, in 2028, as opposed to 2027.

For Oracle, this means further complications and delays in realizing its massive $523 billion order backlog as revenues, even as capex continues to rise.

The stock scores poorly in Benzinga’s Edge Stock Rankings, with an unfavorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.

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