Oracle stock (ORCL) fell close to 7% on Tuesday, marking the steepest daily loss of the year, after second quarter results fell short of Wall Street analyst expectations and a forecast for artificial intelligence spending drew investor scrutiny.
Joining other high-flying tech companies ramping up their cloud businesses, Oracle reaped the benefits of the rapid expansion of data infrastructure across corporate America. The company reported that revenue from its cloud infrastructure unit surged 52% to $2.4 billion. But overall sales and earnings missed analyst forecasts. The company posted earnings of $1.47 a share, compared to analysts’ estimates of $1.48, according to data compiled by Bloomberg.
“Oracle shares following a mixed quarter that was underscored by an acceleration of total revenue, though missing consensus estimates on the top and bottom-line,” D.A. Davidson analysts wrote in a note.
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