Oracle Shares Plummet Following Earnings and Revenue Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2024
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 156.170
Low
180.00
Averages
309.59
High
400.00
Current: 156.170
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Accenture Mandates AI Tool Usage for Leadership Promotions
- Promotion Requirements: Accenture has informed senior staff that regular use of AI tools is a prerequisite for leadership promotions, aiming to enhance the company's competitiveness in the AI sector and ensure employee skills align with market demands.
- Employee Reskilling Initiative: CEO Julie Sweet stated that 550,000 employees have been reskilled in generative AI fundamentals, highlighting the company's commitment to skill enhancement and laying the groundwork for future business transformation.
- Global Employee Impact: While the policy applies to most employees, those in 12 European countries and the division handling U.S. government contracts are exempt, reflecting the company's flexibility and adaptability on a global scale.
- Strategic Partnerships: Accenture has recently partnered with companies like OpenAI and Anthropic to provide AI tool training for tens of thousands of employees, further solidifying its leadership position in AI technology application.
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Oracle Corporation Investors Class Action Notice
- Class Action Notice: The Portnoy Law Firm advises Oracle Corporation (NYSE: ORCL) investors of a class action for those who purchased securities between June 12, 2025, and December 16, 2025, with a deadline of April 6, 2026, for filing a lead plaintiff motion to protect their legal rights.
- Major Contract Signing: On September 10, 2025, Oracle announced a $300 billion, five-year cloud computing contract with OpenAI to provide computing power, indicating Oracle's strategic positioning in the AI sector.
- Debt Financing Plan: Reports on November 13, 2025, revealed Oracle's intention to raise an additional $38 billion in debt to fund its AI initiatives, specifically for two data centers supporting the OpenAI agreement, which led to a 4.15% drop in stock price.
- Increased CapEx Expectations: During the earnings call on December 10, 2025, Oracle's executives disclosed that fiscal 2026 capital expenditures are expected to be $15 billion higher than previously forecasted, resulting in a 10.83% decline in stock price, reflecting market concerns over the company's financial outlook.
See More
Hyperscalers Drive AI Infrastructure Spending
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- Market Dominance: Companies like Amazon, Microsoft, Google, Meta, and Oracle control 70% of the AI market, highlighting their critical role in driving the commercialization of AI technologies, which may influence investment directions across the industry.
- ROI Concerns: Despite the ongoing increase in infrastructure spending by hyperscalers, concerns about return on investment (ROI) remain a focal point, with analysts noting that the lack of clear business models could negatively impact future investment decisions.
- Technological Innovation and Competition: As AI technology rapidly evolves, companies like Nvidia are leading the market with gross margins as high as 70%, demonstrating strong pricing power and competitive advantage, which may attract more investor interest in their future growth potential.
See More
India's AI Industry Receives Major Investments
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- Infrastructure Development: Blackstone's $600 million investment in Indian AI infrastructure startup Neysa highlights the importance of foreign capital in the Indian AI market, which is expected to drive innovation and application of related technologies.
- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
- Market Challenges: Despite significant investments and policy support, analysts point out that India still faces numerous challenges in the AI sector, including a lack of sufficient regulatory frameworks and capital infusion, which could hinder its competitiveness in the global market.
See More
Oracle Corporation Shareholder Class Action Notice Issued
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- Allegations: The complaint alleges that during the class period, Oracle made materially false and misleading statements, failing to disclose that its AI infrastructure strategy would lead to significant capital expenditure increases without corresponding near-term revenue growth, thereby heightening risks related to debt and credit ratings.
- Deadline for Participation: Shareholders must register for the class action by April 6, 2026, and should act promptly to secure their rights, with portfolio monitoring software provided to keep them updated on the case's progress.
- Law Firm Credentials: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investors' rights who have suffered losses due to deceit and illegal business practices, emphasizing the need for companies to adhere to responsible business practices.
See More
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- Micron's Market Performance: Micron Technology's stock surged over 313% in the past year, with a market cap of $463 billion, and is projected to double its revenue and triple its earnings in 2026, indicating strong growth potential in the memory market that could see it surpass ASML in the coming year.
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See More
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- Promotion Requirements: Accenture has informed senior staff that regular use of AI tools is a prerequisite for leadership promotions, aiming to enhance the company's competitiveness in the AI sector and ensure employee skills align with market demands.
- Employee Reskilling Initiative: CEO Julie Sweet stated that 550,000 employees have been reskilled in generative AI fundamentals, highlighting the company's commitment to skill enhancement and laying the groundwork for future business transformation.
- Global Employee Impact: While the policy applies to most employees, those in 12 European countries and the division handling U.S. government contracts are exempt, reflecting the company's flexibility and adaptability on a global scale.
- Strategic Partnerships: Accenture has recently partnered with companies like OpenAI and Anthropic to provide AI tool training for tens of thousands of employees, further solidifying its leadership position in AI technology application.
See More
Oracle Corporation Investors Class Action Notice
- Class Action Notice: The Portnoy Law Firm advises Oracle Corporation (NYSE: ORCL) investors of a class action for those who purchased securities between June 12, 2025, and December 16, 2025, with a deadline of April 6, 2026, for filing a lead plaintiff motion to protect their legal rights.
- Major Contract Signing: On September 10, 2025, Oracle announced a $300 billion, five-year cloud computing contract with OpenAI to provide computing power, indicating Oracle's strategic positioning in the AI sector.
- Debt Financing Plan: Reports on November 13, 2025, revealed Oracle's intention to raise an additional $38 billion in debt to fund its AI initiatives, specifically for two data centers supporting the OpenAI agreement, which led to a 4.15% drop in stock price.
- Increased CapEx Expectations: During the earnings call on December 10, 2025, Oracle's executives disclosed that fiscal 2026 capital expenditures are expected to be $15 billion higher than previously forecasted, resulting in a 10.83% decline in stock price, reflecting market concerns over the company's financial outlook.
See More
Hyperscalers Drive AI Infrastructure Spending
- Infrastructure Investment Surge: In 2023, hyperscalers are projected to spend $700 billion on infrastructure, a 70% year-over-year increase, indicating rapid expansion in the AI market and strong demand for semiconductors, which could drive stock prices of related companies higher.
- Market Dominance: Companies like Amazon, Microsoft, Google, Meta, and Oracle control 70% of the AI market, highlighting their critical role in driving the commercialization of AI technologies, which may influence investment directions across the industry.
- ROI Concerns: Despite the ongoing increase in infrastructure spending by hyperscalers, concerns about return on investment (ROI) remain a focal point, with analysts noting that the lack of clear business models could negatively impact future investment decisions.
- Technological Innovation and Competition: As AI technology rapidly evolves, companies like Nvidia are leading the market with gross margins as high as 70%, demonstrating strong pricing power and competitive advantage, which may attract more investor interest in their future growth potential.
See More
India's AI Industry Receives Major Investments
- Investment Commitment: Amazon and Microsoft have pledged to invest $50 billion in India's AI ecosystem, demonstrating confidence in the country's technological development while providing local businesses with the necessary funding to accelerate growth in the AI sector.
- Infrastructure Development: Blackstone's $600 million investment in Indian AI infrastructure startup Neysa highlights the importance of foreign capital in the Indian AI market, which is expected to drive innovation and application of related technologies.
- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
- Market Challenges: Despite significant investments and policy support, analysts point out that India still faces numerous challenges in the AI sector, including a lack of sufficient regulatory frameworks and capital infusion, which could hinder its competitiveness in the global market.
See More
Oracle Corporation Shareholder Class Action Notice Issued
- Class Action Notice: The Gross Law Firm has issued a notice to shareholders of Oracle Corporation (NYSE: ORCL), encouraging those who purchased shares during the class period from June 12, 2025, to December 16, 2025, to contact the firm regarding potential lead plaintiff appointment for recovery.
- Allegations: The complaint alleges that during the class period, Oracle made materially false and misleading statements, failing to disclose that its AI infrastructure strategy would lead to significant capital expenditure increases without corresponding near-term revenue growth, thereby heightening risks related to debt and credit ratings.
- Deadline for Participation: Shareholders must register for the class action by April 6, 2026, and should act promptly to secure their rights, with portfolio monitoring software provided to keep them updated on the case's progress.
- Law Firm Credentials: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investors' rights who have suffered losses due to deceit and illegal business practices, emphasizing the need for companies to adhere to responsible business practices.
See More
ASML's Market Outlook Compared to Micron and Oracle
- ASML Growth Outlook: ASML anticipates a 14% revenue increase and a 20% earnings jump in 2025, driven by a robust order backlog and sustained demand for AI chips, with its market cap expected to rise from $546 billion, underscoring its leadership in the semiconductor sector.
- Micron's Market Performance: Micron Technology's stock surged over 313% in the past year, with a market cap of $463 billion, and is projected to double its revenue and triple its earnings in 2026, indicating strong growth potential in the memory market that could see it surpass ASML in the coming year.
- Oracle's Order Backlog: Oracle's remaining performance obligation reached $523 billion, up 438% year-over-year, with a forecasted 17% revenue growth to $67 billion in FY 2025, suggesting that despite an 8% stock decline, its substantial backlog will drive future revenue growth.
- Valuation Discrepancy: Micron's forward P/E ratio stands at 13, significantly lower than ASML's 40, and given its rapid growth potential, it is expected to command a higher market valuation, potentially surpassing ASML within the next year.
See More
