Wall Street Breakfast Oracle tumbles on revenue miss
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Dec 11, 2025 Oracle faces backlash after missing revenue targets despite a strong push in AI, causing shares to dive. Elon Musk hints at a potential SpaceX IPO by mid-2026, raising eyebrows about its valuation. Tensions rise within Meta as a new AI team conflicts with established leaders over strategic priorities. Analysts warn of impending margin pressure for companies following revenue misses, even amid AI-driven investments. Stay updated as the market reacts to these pivotal developments.
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Oracle's Mixed Quarter And Huge RPO
- Oracle beat on adjusted EPS but missed revenue expectations, dragging shares down over 10% premarket.
- Remaining performance obligations surged 438% to $523 billion, signaling big future contract commitments.
Infrastructure Outpaces Applications
- Infrastructure cloud revenue grew 66% while applications grew 11%, showing where Oracle's strength lies.
- Oracle sold its Ampere stake for a $2.7 billion pre-tax gain as it pursues chip neutrality and GPU flexibility.
AI Spending Doesn't Guarantee Revenue
- Analysts warn revenue misses can undercut the AI investment narrative and pressure margins amid heavy CapEx.
- Expect margin compression if revenue growth slows despite continued AI spending.