The company was on track to lose about $30 billion in market value, based on its premarket share price of $115. The stock has risen 55% this year on optimism the rise of generative AI would drive up cloud demand. Lower-than-expected revenue for the first quarter and a below-estimate forecast for the second, however, signaled the boost from AI would take longer to materialize.
FILE PHOTO: Illustration shows Oracle cloud service logo
The stock has risen 55% this year on optimism the rise of generative AI would drive up cloud demand. Lower-than-expected revenue for the first quarter and a below-estimate forecast for the second, however, signaled the boost from AI would take longer to materialize. "We continue to believe high single-digit growth might be unsustainable for Oracle given Cerner integration risks and formidable data center competition," D.A. Davidson analyst Gil Luria said, as he cut his price target on the stock to $105.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Oracle revenue misses estimates as tough economy hurts cloud spendingCompanies have been trying to optimize their cloud budgets due to a global economic slowdown after a spurt in spending and adoption during the pandemic. Oracle, which was a laggard in the cloud sector, has played catch-up in a segment dominated by larger rivals such as Amazon Web Services and Microsoft.
Read more »
Oracle reports quarterly revenue narrowly below estimates(Reuters) - Oracle narrowly missed market expectations for first-quarter revenue on Monday, as companies pared back spending on cloud services due to ...
Read more »
Updated Covid vaccines, Oracle earnings, Tesla stock jumps: Top StoriesThe U.S. Food and Drug Administration has approved updated Covid vaccines from Pfizer (PFE) and Moderna (MRNA) to combat new virus variants amid a surge in new cases and hospitalizations. Oracle (ORCL) shares moved lower in after-hours trading after reporting mixed fiscal first quarter results. Lastly, Tesla (TSLA) stock jumped after Morgan Stanley (MS) upgraded the stock to 'Overweight' from 'Equal Weight' and issued a $400 price target, citing a potential boost from its Dojo supercomputer. Yahoo Finance's Akiko Fujita breaks down the top stories of the day.
Read more »
China's Alibaba says Daniel Zhang quits cloud business in surprise moveSHANGHAI (Reuters) -China's Alibaba Group said on Sunday that Daniel Zhang will step down from its cloud business, in a surprise move just two months after the company announced he would leave his roles as group CEO and chairman to focus on the cloud unit. Zhang had previously been concurrently serving in three roles, heading the group as well as its cloud unit. As scheduled, he handed over the role of group CEO to Eddie Wu on Sunday, who will also take charge of the cloud business after Zhang's departure, the company said in a statement.
Read more »
China’s Alibaba says Daniel Zhang quits cloud business in surprise moveZhang had previously been concurrently serving in three roles, heading the group as well as its cloud unit
Read more »