Oracle (ORCL) Posts Weak Cloud Sales, Raising Fear of Delayed Payoff
Bloomberg.com••business
Key Points:
- Oracle's shares dropped over 10% in after-hours trading following the company's report of increased spending on AI data centers and equipment.
- The company's fiscal second-quarter cloud sales rose 34% to $7.98 billion, and infrastructure revenue increased 68% to $4.08 billion.
- Despite strong growth, both cloud sales and infrastructure revenue slightly missed analysts' expectations, raising concerns about the pace at which AI investments are converting into cloud revenue.
