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Oracle gets Big Red reality check after financials fail to impress

Dec 10, 2024 - theregister.com
Oracle's shares fell by about 7% after its Q2 2025 revenues slightly missed market expectations, reaching $14.06 billion against the anticipated $14.1 billion. This dip comes despite a strong performance throughout 2024, where Oracle impressed investors with revenue and cloud services growth. The company's history of exceeding expectations means that even a minor shortfall can unsettle investors. Additionally, expectations for AI companies are high, and Oracle has struggled to position itself as an AI leader, despite its extensive offerings in databases and infrastructure.

Despite the recent setback, Oracle has seen significant growth this year, with its value increasing by around 80%, marking its highest growth in nearly 25 years. CEO Safra Catz highlighted multi-cloud agreements with major players like Microsoft, Google, and AWS, which are expected to generate substantial revenue. Oracle has also enhanced its AI credentials through a partnership with Meta to support its Llama large language models, with CTO Larry Ellison touting Oracle Cloud Infrastructure as superior in speed and cost.

Key takeaways:

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  • Oracle's Q2 2025 revenue of $14.06 billion narrowly missed market expectations, causing a 7% drop in shares.
  • Despite recent struggles to position itself as an AI company, Oracle has made significant deals, including providing infrastructure for Meta's Llama models.
  • Oracle's multi-cloud agreements with Microsoft, Google, and AWS are expected to generate over $100 million in revenue in their first year.
  • Oracle has gained around 80% in value this year, marking its highest growth in nearly 25 years.
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