2026-01-12 07:44:23

Investors withdrew from Oracle shares - the stock dropped nearly 12% in pre-market trading after the company revealed aggressive investment plans in artificial intelligence infrastructure.

## Financial results below expectations

In the last quarter, Oracle reported revenues of $16.1 billion. While this represents a 14% year-over-year increase, the result disappointed the market - analysts had expected higher figures. The downward revision in forecasts served as a signal for investors to turn away.

## Massive investments in data centers

The key reason for the stock decline was the company's decision to spend an additional $15 billion on data centers. The expenditures aim to support the development of AI applications and meet the growing demand from companies like OpenAI. Oracle also raised its capex forecast for the current fiscal year by as much as 40%, setting a new target of $50 billion.

## Rising debt worries analysts

The aggressive investment strategy is impacting the company's balance sheet. Long-term debt has increased to $99.9 billion, and Morgan Stanley forecasts that Oracle's net debt could reach approximately $290 billion by 2028. Investors are wondering whether such financial obligations will translate into profitability in the short term, especially given the uncertainty in the tech market.

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