Oracle's Tepid Forecast and Revenue Misses Cause Stock Slide
Oracle shares dropped 9% in premarket trading after reporting another quarter of below-expectations cloud sales and a bleak forecast, raising concerns about the company's growth. The revenue growth of Oracle's cloud infrastructure unit, which competes with Amazon Web Services and Microsoft Azure, has slowed over the past three quarters. Despite blaming supply constraints for the weak results, analysts expressed doubts about Oracle's prospects and several brokerages lowered their price targets on the stock. Weaker enterprise spending and intense competition were also cited as factors impacting the company's overall results. Oracle's forecast for third-quarter revenue growth fell below analysts' average estimate.
