Oracle Falls on Disappointing Cloud Sales; Eli Lilly Jumps; Gemini Rallies
Dec 11, 2025
Oracle's shares dipped as AI spending rises but cloud revenues fell short of expectations. Eli Lilly's new obesity drug showed promise, with patients losing over 23% of their weight in trials, boosting the company's stock. Meanwhile, Gemini's application for a derivatives exchange was approved, leading to a rise in their shares. Concerns also arose over regulatory issues affecting PDD, raising investor fears. The tech sector felt the impact of Oracle's disappointing results, affecting other major players.
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insights INSIGHT
Cloud Sales Growth Misses Expectations
Oracle's cloud sales grew but missed analyst estimates, with infrastructure revenue up 68% yet still short of forecasts.
Nathan Hager and Valerie Teitel point to a mismatch between spending pace and cloud revenue conversion.
insights INSIGHT
Oracle's CapEx Jump And Cash Burn Highlight Risk
Oracle signaled a 40% rise in CapEx guidance to $50 billion and reported a $10 billion cash burn in the prior quarter.
Nathan Hager and Valerie Teitel say this heightened investor anxiety over the scale and timing of returns.
insights INSIGHT
Oracle's AI Bet Stretches Returns Timing
Oracle's heavy AI-driven data center build-out is increasing CapEx dramatically without immediate accelerating revenue growth.
Valerie Teitel flags investor worry about timing of returns versus nearly $100 billion of company debt.
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On this episode of Stock Movers: - Shares of Oracle (ORCL) fell in early trading after the company reported a jump in spending on AI data centers and other equipment, rising outlays that are taking longer to translate into cloud revenue than investors want. Fiscal second-quarter cloud sales increased 34% to $7.98 billion, while revenue in the company’s closely watched infrastructure business gained 68% to $4.08 billion. Both numbers fell just short of analysts’ estimates. Known for its database software, Oracle has recently found success in the competitive cloud computing market. It’s engaging in a massive data center build-out to power AI work for OpenAI and also counts companies such as ByteDance Ltd.’s TikTok and Meta Platforms Inc. as major cloud customers. - Shares of Eli Lilly & Co. (LLY) jumped in the premarket session after the company's next-generation obesity shot helped patients lose almost a quarter of their body weight, potentially making the experimental drug the most potent weight loss medicine yet. The late-stage study was designed to measure weight loss and pain associated with knee osteoarthritis, a condition closely linked to obesity. Patients on the highest dose of the drug — called retatrutide — lost more than 23% of their body weight in 68 weeks, Lilly said in a statement Thursday. - Shares of Gemini Space Station Inc. (GEMI) rallied after the company's application for a derivatives exchange was approved by the Commodity Futures Trading Commission Wednesday, in a move that will allow the company to join the fast-growing field of prediction markets. Gemini, co-founded by billionaire twin brothers Tyler and Cameron Winklevoss, will soon allow existing US customers to trade event contracts on its website and mobile app, the company said in a blog post. In a regulatory filing prior to its initial public offering, the firm included prediction markets on “economic, financial, political and sports forecasts” among the list of products it was interested in trading.
Stock Movers