Oracle Stock Plummets Despite Nvidia and Meta Backing as Revenue Misses Estimates
Oracle's shares tumbled 11% in after-hours trading despite securing high-profile AI partnerships with Nvidia and Meta. The cloud infrastructure firm reported record backlog growth to $523 billion, fueled by these agreements, but fiscal Q2 revenue of $16.06 billion fell short of analyst expectations.
The market reaction underscores growing skepticism about AI-driven valuations, particularly for companies like Oracle that rely heavily on a few major tech partners. While adjusted earnings beat forecasts at $2.26 per share, investors appear more focused on the revenue miss and potential circularity in its Nvidia relationship.
Wall Street had warned of Oracle's challenging position amid AI bubble concerns. The Meta partnership announcement failed to alleviate worries about the breadth of demand for Oracle's AI offerings, with the stock giving back gains from its September rally.
