Oracle’s Weak Cloud Sales Spark Concerns Over Delayed Payoff
Oracle Corp. experienced a significant decline in its stock, dropping 11% during early trading. This decrease followed the company’s recent announcement regarding increased spending in AI data centers and other technological infrastructure.
Concerns Over Oracle’s Cloud Sales
Investors are expressing concerns over Oracle’s delayed financial returns from its heavy investments in cloud technology. Although the company’s fiscal second-quarter cloud sales reached $7.98 billion, marking a 34% increase year-over-year, this figure was slightly below analysts’ expectations.
Infrastructure Revenue Growth
Meanwhile, Oracle’s infrastructure business performed well, achieving a remarkable 68% growth, bringing in $4.08 billion. Despite this strong performance, both cloud and infrastructure sales fell short of analyst projections.
Summary of Key Figures
- Cloud Sales: $7.98 billion (34% increase)
- Infrastructure Revenue: $4.08 billion (68% increase)
- Stock Decline: 11%
As Oracle continues to invest heavily in AI and related technologies, the expectation for quicker returns remains crucial. The market’s reaction indicates a growing impatience among investors for timely results in cloud revenue growth.
