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Key Moments

  • Oracle shares opened almost 12% lower in Frankfurt, mirroring U.S. after-hours declines.
  • The company projected sales and profit below analyst expectations.
  • Oracle said spending would rise by $15 billion versus earlier estimates, reflecting heavier AI cloud investments.

European Trading Mirrors U.S. After-Hours Weakness

On Dec 11, Oracle shares opened nearly 12% lower in Frankfurt, closely tracking the U.S. after-hours drop in the stock. The move came after the company issued sales and profit forecasts that fell short of Wall Street consensus estimates, pressuring sentiment around the name in both markets.

Spending Plans Expand by $15 Billion

Oracle disclosed that its spending would increase by $15 billion compared with its earlier projections. The additional outlays are tied to significant capital investment aimed at attracting and supporting AI cloud-computing customers. The forecast highlighted that these large-scale commitments are not yet translating into profit at the pace many investors had anticipated.

Metric / ItemDetail
Share price move in FrankfurtOpened almost 12% lower
Spending change vs earlier estimateIncrease of $15 billion
Backlog (per Jefferies note)$523B, described as slightly ahead

Analyst Reaction and Debt Concerns

Jefferies characterized Oracle’s latest performance as mixed, pointing to a backlog figure that exceeded expectations, while also flagging ongoing funding questions tied to AI-related investments.

“Results were mixed with backlog of $523B slightly ahead… Despite management’s commitment to its IG (investment-grade) debt rating, AI debt funding concerns were unresolved,” wrote Jefferies in a note, sticking to its buy rating.

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