US EditionOracle Shares Slide as Earnings Fail to Ease AI Bubble Fears
Oracle’s AI-driven investments risk cash flow as debt concerns rise amid a $300 billion OpenAI cloud deal and $17 billion annual data center spending forecast by 2027.
- On Wednesday, Oracle Corp. reported adjusted EPS of $2.26 and revenue of $16.06 billion, missing expectations and causing shares to slide over 6% in after-hours trading.
- Following September, Oracle Corp. said its AI-related backlog had more than quadrupled to $455 billion, creating over $300 billion in market wealth in minutes.
- Rising debt-market stress followed heavy note sales and last week the cost of protecting Oracle's debt reached its highest level since March 2009, as Oracle plans to boost capex and burn roughly $17 billion a year by 2027.
- Valuation concerns are growing as Oracle shares trade at roughly 30 times estimated earnings, tumbling about a third since Sept. 10 amid investor skittishness over capital and OpenAI commitments.
- OpenAI has signed deals to pay Oracle some $300 billion, and analysts warn Oracle management must prepare contingency plans if OpenAI cannot meet commitments amid competition from Alphabet's Gemini.
55 Articles
55 Articles
Why Oracle Stock Is Plummeting Today
Key PointsOracle beat Wall Street's earnings targets but missed the Street's revenue projections.The company is relying on expensive debt to fund its substantial -- and growing -- capital expenditures, making investors uneasy. 10 stocks we like better than Oracle › Shares of Oracle (NYSE: ORCL) are falling today, down 13.7% as of 12:09 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite lost 0.3% and 1.1%, respectively. Oracle reported e…
Shares in AI giant Oracle fall after revenue results ramp up bubble fears
Shares of cloud computing giant Oracle plunged more than 10% in after-hours trading on Wednesday after the company’s revenues fell short of Wall Street expectations.The company reported revenue of $16.06bn (£11.99bn) for the three months that ended in November, compared with the $16.21bn projected by analysts.Revenue growth was up 14%, with a 68% surge in sales at its AI business, Oracle Cloud Infrastructure (OCI), the company said.OCI services …
Oracle misses on quarterly revenue as questions about AI infrastructure spending and debt drive stock slide
REUTERS/Robert GalbraithOracle missed its quarterly revenue estimates, causing its shares to fall by more than 6% after hours.Despite the miss, Oracle still saw 14% year-over-year revenue growth in the quarter ending November 30.Oracle has leaned into AI, betting big on massive data center expansion to win more business.Oracle missed its quarterly revenue.Oracle shares slid more than 6% on Wednesday in after-hours trading, after the software gia…
Coverage Details
Bias Distribution
- 44% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
