Oracle (ORCL) shares fell more than 11% in after-hours trading, following the Q2 fiscal 2026 report, a sharp repricing that seemingly contradicts the main narrative of booming AI demand.
Oracle shares edged lower on Friday as investors appear to tap out of technology. It comes after the company's quarterly revenue missed analyst expectations.
Oracle is simultaneously planning heavier capital expenditures and signing up for leases to meet demand for cloud infrastructure for artificial intelligence customers such as OpenAI. The company reported $248 billion in lease commitments at the end of November, with $10 billion allocated for cloud capacity.
Oracle's NYSE: ORCL stock price plunged following its fiscal year 2026 (FY2026) Q2 earnings release in mid-December because of its mixed results. However, weak as the revenue may be, the company is undergoing a strategic transformation supported by AI that will cement its position as a leader for decades to come.
Beth Kindig, lead tech analyst at the I/O fund, says investors should keep an eye on the moment when there is an inflexion - which hasn't happened yet, but which is what tech CEOs are "banking on." She joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.
CNBC's "Power Lunch" team discusses Oracle's stock performance amid AI bubble fears with Alex Haissl of Rothschild & Co Redburn.
Oracle shares fell sharply on Thursday, a stark display of investors' concerns about tech companies overspending on artificial-intelligence infrastructure.
Oracle shares fell sharply on Thursday, a stark display of investors' concerns about tech companies overspending on artificial-intelligence infrastructure.
What happens when investors start turning a microscope on promises of AI-driven gold?
Investors fearful of a tech “bubble” issued a collective thumbs down over the firm's massive AI spending.
Oracle's (ORCL) second-quarter revenue miss, coupled with a disappointing profit outlook, is sending shockwaves through the tech sector today.
Today, investors are waking up to red on their screens as many tech and AI stocks are dropping in premarket trading.