Thu, 11 Dec 2025

Thu, 11 Dec 2025 Shares in AI giant Oracle fall after revenue results ramp up bubble fears

The cloud computing giant's revenue miss renews questions about its financial health.

* Oracle's shares fell by more than 10% in after-hours trading on Wednesday due to revenue that missed Wall Street expectations.
* Revenue was $16.06bn, compared to a projected $16.21bn, with 14% growth and a 68% surge in sales at its AI business, Oracle Cloud Infrastructure (OCI).
* Despite the disappointing results, Oracle's chairman Larry Ellison struck a cautious tone, saying the company needs to remain agile in response to changes in AI technology.
* Ellison also announced "chip neutrality" policy, where Oracle will buy chips from any maker to serve clients, rather than relying on Nvidia as previously stated.
* The company is involved in multiple AI infrastructure arrangements that have raised concerns about "circular financing" deals and increased debt.
* Analysts are weighing whether Oracle's massive OpenAI partnership may mean overexposure with a customer currently under scrutiny for profitability concerns.
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