Oracle shares drop after profit, sales miss estimates
Photo: Reuters
Shares of Oracle opened nearly 12% lower in Frankfurt, following losses in U.S. afterhours trading after the company forecasted sales and profit that fell short of analyst expectations.
Oracle noted that spending would increase by $15 billion compared with earlier estimates, indicating that large capital outlays to attract AI cloud-computing customers are not generating profits as quickly as Wall Street had anticipated, News.Az reports, citing Reuters.
“Results were mixed, with a backlog of $523 billion slightly ahead… Despite management’s commitment to its investment-grade debt rating, AI debt funding concerns remain unresolved,” Jefferies said in a note, while maintaining its buy rating.
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