Oracle shares fell nearly 12% in pre-market trading as aggressive AI investments sparked investor concerns.
Oracle (ORCL.N) shares fell nearly 12% in pre-market trading on Thursday due to earnings showing revenue below expectations, and the company announced an additional $15 billion data center expenditure to meet AI demand. Last quarter's revenue was $16.1 billion, a 14% year-over-year increase but below analyst expectations. The company has raised its capital expenditure forecast for this fiscal year by 40% to $50 billion, with long-term debt rising to $99.9 billion. Investors are concerned about Oracle's large-scale borrowing and spending to meet the needs of AI companies such as OpenAI, questioning its short-term return prospects. Morgan Stanley expects Oracle's net debt to reach about $290 billion by 2028.
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