Oracle’s (ORCL) stock is down 12% after the technology giant reported mixed financial results that disappointed investors.
The cloud computing and database software maker reported earnings per share (EPS) of $2.26 U.S., which handily beat the $1.64 U.S. expected on Wall Street.
However, revenue for the company’s fiscal second quarter totaled $16.06 billion U.S., which missed consensus expectations for $16.19 billion U.S.
Oracle has been under pressure since the company raised $18 billion U.S. in a bond sale in September of this year, marking one of the largest debt issuances for the technology industry.
The company has gone all-in on artificial intelligence (A.I.), signing a $300 billion U.S. deal with ChatGPT maker OpenAI this autumn.
However, many analysts and some investors have questioned Oracle’s aggressive A.I. plans and whether it needs such a large amount of debt to execute it.
Management at Oracle have said they plan to raise $20 billion U.S. to $30 billion U.S. in debt every year for the next three years.
In addition to its financial results, Oracle announced that it’s maintaining its quarterly dividend of $0.50 U.S. per share, which is next payable on Jan. 23 to stockholders of record Jan. 9.
Prior to today (Dec. 11), Oracle’s stock had risen 34% this year to trade at $223.01 U.S. per share.
Tech Insider
