Oracle shares fell nearly 12% in pre-market trading as aggressive AI investments sparked investor concerns.
Oracle (ORCL.N) shares fell nearly 12% in pre-market trading on Thursday due to earnings showing revenue below expectations, and the company announced an additional $15 billion data center expenditure to meet AI demand. Last quarter's revenue was $16.1 billion, a 14% year-over-year increase but below analyst expectations. The company has raised its capital expenditure forecast for this fiscal year by 40% to $50 billion, with long-term debt rising to $99.9 billion. Investors are concerned about Oracle's large-scale borrowing and spending to meet the needs of AI companies such as OpenAI, questioning its short-term return prospects. Morgan Stanley expects Oracle's net debt to reach about $290 billion by 2028.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Terra Luna Classic Shakes the Crypto Market with Surprising Developments
In Brief LUNC experienced a significant price decline following Do Kwon's sentencing. The court cited over $40 billion losses as a reason for Do Kwon's penalty. Analysts suggest short-term pressure on LUNC may persist, despite long-term community support.
NYDIG: Tokenized Assets Offer Modest Crypto Gains as Growth Depends on Access and Regulation
Cardano Investors Split As Market Fatigue Sets In
Trending news
MoreCrypto prices
More
