Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
  • AI
  • Tech
  • Cybersecurity
  • Finance
  • DeFi & Blockchain
  • Startups
  • Gaming
Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
Dataconomy
No Result
View All Result

The real story behind Oracle’s 7% stock slide and AI optimism

Despite Monday’s stock decline, Oracle has seen substantial gains in 2023, with shares rising over 80% year-to-date

byKerem Gülen
December 10, 2024
in News, Finance

Oracle shares dropped 7% in after-hours trading following disappointing fiscal second-quarter results that missed analysts’ expectations. The database software company reported adjusted earnings per share of $1.47, slightly below the projected $1.48, on revenues of $14.06 billion, which also fell short of the $14.1 billion forecast.

Oracle’s fiscal second-quarter sales grew by 9% year-over-year. Net income surged 26%, reaching $3.15 billion, or $1.10 per share, up from $2.5 billion, or 89 cents per share, a year earlier. Notably, the company’s cloud services revenue increased by 12% from last year, totaling $10.81 billion, which accounted for 77% of total revenues.

Oracle shares drop 7% after disappointing second-quarter results

Oracle highlighted strong performance in its cloud infrastructure sector, where revenue soared by 52% year-over-year to $2.4 billion. This area has become a significant growth driver as enterprises transition their data workloads away from traditional data centers. In his statement, Oracle founder Larry Ellison emphasized the company’s strong positioning in the AI market, stating, “Oracle Cloud Infrastructure trains several of the world’s most important generative AI models because we are faster and less expensive than other clouds.”

Stay Ahead of the Curve!

Don't miss out on the latest insights, trends, and analysis in the world of data, technology, and startups. Subscribe to our newsletter and get exclusive content delivered straight to your inbox.

Tapping into increasing demand for computing power, Oracle recently signed an agreement with Meta to use its infrastructure for projects associated with the Llama family of large language models. CEO Safra Catz described the demand for AI as “record-level,” asserting that Oracle’s cloud infrastructure outpaced that of its hyperscale competitors.

In terms of customer commitments, Oracle reported a 50% growth in remaining performance obligations (RPO), bringing the total to $97 billion. Catz noted that despite the current quarter’s challenges, this figure indicates that growth rates may continue to rise.

For the forthcoming quarter, Oracle projected revenue growth between 7% and 9%. At the midpoint of this guidance, revenue would approximate $14.3 billion, which is less than the $14.65 billion analysts expected. The company anticipates adjusted earnings of $1.50 to $1.54 per share, whereas analysts had predicted $1.57.

In September, Oracle had raised its fiscal 2026 revenue guidance to $66 billion, approximately $1.5 billion above analyst expectations. The company also announced its cloud unit would begin taking orders for computing clusters powered by over 131,000 Nvidia “Blackwell” GPUs, designed for training AI models.

Despite Monday’s stock decline, Oracle has seen substantial gains in 2023, with shares rising over 80% year-to-date, marking the most successful year for the stock since 1999. Though the recent dip reflects investor caution following less stellar earnings, the strong growth in the AI segment and Oracle’s cloud capabilities suggest ongoing potential.


Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Featured image credit: Oracle

Tags: Oraclestock

Related Posts

Aptos partners with WLFI to launch USD1 stablecoin

Aptos partners with WLFI to launch USD1 stablecoin

October 1, 2025
Nothing OS 4.0 beta adds Essential Apps to Phone 2

Nothing OS 4.0 beta adds Essential Apps to Phone 2

October 1, 2025
ChatGPT adds Instant Checkout with Agentic Commerce Protocol

ChatGPT adds Instant Checkout with Agentic Commerce Protocol

September 30, 2025
California enacts SB 53 AI transparency law

California enacts SB 53 AI transparency law

September 30, 2025
YouTube settles Trump lawsuit for .5 million

YouTube settles Trump lawsuit for $24.5 million

September 30, 2025
EA sold to Saudi-backed group for  billion

EA sold to Saudi-backed group for $55 billion

September 30, 2025

LATEST NEWS

Aptos partners with WLFI to launch USD1 stablecoin

Nothing OS 4.0 beta adds Essential Apps to Phone 2

ChatGPT adds Instant Checkout with Agentic Commerce Protocol

California enacts SB 53 AI transparency law

YouTube settles Trump lawsuit for $24.5 million

EA sold to Saudi-backed group for $55 billion

Dataconomy

COPYRIGHT © DATACONOMY MEDIA GMBH, ALL RIGHTS RESERVED.

  • About
  • Imprint
  • Contact
  • Legal & Privacy

Follow Us

  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
No Result
View All Result
Subscribe

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.