Summary
Oracle's stock dropped by over 10% after failing to meet expected revenue figures. Even though the company reported growth, particularly in its AI cloud services, concerns remain about the possibility of an AI investment bubble. Oracle recently secured a significant contract with OpenAI and raised a large sum through bonds to fund data centers.
Key Facts
- Oracle's stock fell more than 10% after-hours due to lower than expected revenue.
- The company reported $16.06 billion in revenue, missing the $16.21 billion analysts expected.
- Oracle's AI business, Oracle Cloud Infrastructure, saw a 68% increase in sales.
- Oracle signed a $300 billion contract with OpenAI for computing power over five years.
- Oracle stock is down 40% from its peak but still 30% higher since the start of the year.
- Larry Ellison, Oracle's chairman, expressed the need for adaptability in AI and a "chip neutrality" strategy.
- Oracle raised $18 billion in September to fund data center expansion, raising concerns over debt.
