Oracle Drops After Surprise AI Costs Challenge Cloud Narrative
Oracle Corporation shares struggled as investors shrugged off record fiscal Q4 revenue and turned to the cost of the company’s AI infrastructure spending. Oracle last changed hands near $184.10, giving it a roughly $536.1 billion market cap and a trailing price-to-earnings ratio of about 33. That price-to-earnings ratio is a standard valuation check. The stock dropped 12% Thursday, according to Reuters, with investors worried about higher capital spending and debt levels as Oracle ramps up its AI cloud infrastructure investments.