Alejandro Sánchez Warwick @AlejandroSW: "📉 Drop in ORACLE ($ORCL)..."

Spain

📉 Drop in ORACLE ($ORCL) after quarterly earnings Hello everyone, Today Oracle is seeing a significant pullback after releasing its earnings. Although the numbers weren’t bad, they failed to meet market expectations — something especially sensitive in an environment where investors expect accelerated growth in everything related to AI and cloud. 🔍 What exactly happened? 1️⃣ Growth below expectations Oracle is still growing, but not at the pace analysts anticipated. Its cloud business —the key segment to compete with $MSFT (Microsoft), $GOOG (Alphabet), and $AMZN (Amazon.com Inc)— continues to expand, but not fast enough to justify its current multiples. 2️⃣ Balance sheet pressure The company continues to increase its debt, which is starting to worry investors. In a market where the strongest players generate positive net cash, seeing Oracle continue to leverage itself doesn’t help improve sentiment. 3️⃣ Very high expectations The market had been pricing in Oracle as one of the big beneficiaries of the AI boom. The problem is: when the bar is so high, anything that doesn’t strongly beat expectations tends to get punished. 📌 Conclusion The results are not negative, but they do fall short of the accelerated growth narrative the market was expecting. Add the rising debt → and the outcome is a sharp short-term correction. I’ll keep monitoring its performance, especially the evolution of Oracle Cloud and how long it takes them to close the gap with their direct competitors. If you want to follow my analysis and positions, you can copy my portfolio here on eToro or follow me so you don’t miss anything 🚀📊 $AAPL (Apple) $AMZN $NVDA (NVIDIA Corporation) $MSFT $GOOG $META (Meta Platforms Inc) $BTC $ETH