Oracle stock dives
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The tech giant is piling on debt to fund AI data centers.
Three months ago, Oracle Corp.’s scorching earnings outlook sent the shares soaring to their best day in three decades. But a quarter later, things look very different for the database
As Oracle pours billions into AI data centers, enterprises may face rising costs — but Oracle too is in a tight spot, which gives CIOs leverage in negotiations.
Oracle Corporation plunged over 10% post-Q2 despite strong cloud growth and surging RPO. Click here to read why ORCL stock is a Buy.
With relatively tepid growth, rising debt, an increasing cash burn rate, soaring capex and reliance on money-losing OpenAI, $ORCL has not earned its premium valuation.
Oracle Corp (ORCL) reports robust cloud growth and EPS gains, but faces capital-intensive hurdles in AI expansion.
Oracle leadership will likely field plenty of questions on not just AI, data center revenue, but also on the quality of that revenue, profit margins and a diversity of customers beside OpenAI and Meta.