Oracle shares fall nearly 12% pre-market as aggressive AI investments raise investor concerns

Jinse Finance reported that a certain exchange (ORCL.N) saw its pre-market share price drop nearly 12% on Thursday, due to earnings showing revenue below expectations and the company announcing an additional $15 billion in data center spending to meet AI demand. Last quarter's revenue was $16.1 billion, up 14% year-on-year but below analysts' forecasts. The company has raised its capital expenditure forecast for this fiscal year by 40% to $50 billion, and its long-term debt has climbed to $99.9 billion. Investors are concerned about the large-scale borrowing and spending the exchange is undertaking to meet the needs of AI companies such as OpenAI, questioning its short-term return prospects. JPMorgan expects the exchange's net debt to reach about $290 billion by 2028.