{"id":1697,"date":"2024-12-10T12:38:20","date_gmt":"2024-12-10T17:38:20","guid":{"rendered":"https:\/\/thetimesfinancial.com\/?p=1697"},"modified":"2024-12-10T12:38:22","modified_gmt":"2024-12-10T17:38:22","slug":"oracle-shares-drop-over-7-following-weak-earnings-report","status":"publish","type":"post","link":"https:\/\/thetimesfinancial.com\/?p=1697","title":{"rendered":"Oracle Shares Drop Over 7% Following Weak Earnings Report"},"content":{"rendered":"\n<p>Oracle shares fell more than 7% on Tuesday after the company posted fiscal second-quarter results that missed analysts\u2019 expectations and provided a forecast below market predictions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Results vs. Estimates<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Earnings per share:<\/strong> $1.47 adjusted (vs. $1.48 expected)<\/li>\n\n\n\n<li><strong>Revenue:<\/strong> $14.06 billion (vs. $14.1 billion expected)<\/li>\n<\/ul>\n\n\n\n<p>Oracle\u2019s second-quarter revenue grew 9% year-over-year, while net income rose 26% to $3.15 billion, or $1.10 per share, compared to $2.5 billion, or 89 cents per share, a year ago.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cloud Services Drive Growth<\/h3>\n\n\n\n<p>Oracle\u2019s cloud services unit, which accounts for 77% of total revenue, grew by 12% to $10.81 billion. Its cloud infrastructure business, a key growth driver, surged 52% year-over-year to $2.4 billion, fueled by increasing demand for AI-focused computing power.<\/p>\n\n\n\n<p>The company recently signed a deal with Meta to support AI-related projects for its Llama large language model family.<\/p>\n\n\n\n<p>\u201cOracle Cloud Infrastructure trains several of the world\u2019s most important generative AI models because we are faster and less expensive than other clouds,\u201d Oracle founder Larry Ellison said.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Forecast Disappoints<\/h3>\n\n\n\n<p>For the current quarter, Oracle expects:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Revenue growth:<\/strong> 7% to 9%, translating to approximately $14.3 billion (vs. $14.65 billion expected).<\/li>\n\n\n\n<li><strong>Adjusted EPS:<\/strong> $1.50 to $1.54 (vs. $1.57 expected).<\/li>\n<\/ul>\n\n\n\n<p>Despite the disappointing guidance, Oracle has been expanding its AI capabilities. In September, the company boosted its fiscal 2026 revenue guidance to $66 billion and announced plans to sell computing clusters powered by over 131,000 Nvidia Blackwell GPUs, specifically for AI model training.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stock Performance<\/h3>\n\n\n\n<p>Oracle shares have risen more than 80% year-to-date as of Monday\u2019s close, marking their best annual performance since 1999. However, Tuesday\u2019s selloff highlights investors&#8217; concerns about slower-than-expected growth despite the company\u2019s strong push into cloud and AI markets.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oracle shares fell more than 7% on Tuesday after the company posted fiscal second-quarter results that missed analysts\u2019 expectations and provided a forecast below market predictions. Key Results vs. Estimates Oracle\u2019s second-quarter revenue grew 9% year-over-year, while net income rose 26% to $3.15 billion, or $1.10 per share, compared to $2.5 billion, or 89 cents [&hellip;]<\/p>\n","protected":false},"author":10772,"featured_media":1698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[708,706,705,711],"class_list":{"0":"post-1697","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","9":"tag-cloud-growth","10":"tag-earnings-miss","11":"tag-oracle-stock-drop"},"_links":{"self":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/1697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/users\/10772"}],"replies":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1697"}],"version-history":[{"count":1,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/1697\/revisions"}],"predecessor-version":[{"id":1699,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/1697\/revisions\/1699"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=\/wp\/v2\/media\/1698"}],"wp:attachment":[{"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetimesfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}