Oracle shares dropped over 4.46% pre-market following mixed earnings and concerns over the sustainability of its massive $12 billion capital expenditure surge (200% YoY) aimed at accelerating AI and cloud expansion.
- The selloff was fueled partly by rumors of potential OpenAI data center delays, which Oracle quickly moved to rebut.
- Despite the short-term revenue misses, analysts remain largely positive, with 23 out of 35 rating the stock a 'Buy' and projecting a 57% upside to $298.43.
- The stock was trading at $186.43 (-1.87%) pre-market, aligning with broader market weakness and AI sector jitters.