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Markets3h 7m ago

Oracle shares tumbled 12% in early Wall Street trading despite reporting quarterly earnings and revenue that exceeded expectations.

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Wall Street

Who
Oracle, Jefferies, Citi
What
Oracle shares tumbled 12% in early Wall Street trading despite reporting quarterly earnings and revenue that exceeded expectations.
When
Thu, 11 Jun 2026 14:11:18 GMT · 3h 7m ago
Where
Wall Street ·
Why
The substantial increase in its backlog (Remaining Performance Obligations - RPO) to $638bn, largely from large-scale AI contracts, did not prevent a shares plunge as analysts expressed concerns regarding the conversion of RPO into revenue and the unchanged revenue forecast for FY 2026-2027.
The Frontline Impact

How this affects you

This event highlights investor skepticism about the conversion of large AI infrastructure backlogs into immediate revenue for tech giants, even when other financial metrics are strong. It suggests that market participants prioritize clearer short-term revenue realization over long-term contract growth, potentially influencing how future growth in the AI sector is valued.

Story chain

4 events in this thread
  1. Markets1h 6m ago
    Oracle Corp's stock plummeted nearly 14% to a low of $175.28 on Thursday after the company released its financial fine print for the fourth quarter of fiscal 2026.
    Open article
  2. Markets1h 38m ago
    SpaceX IPO is said to draw over $70 Billion in retail orders, and Oracle earnings topped estimates with plans to raise another $20 Billion.
    Open article
  3. Markets1h 41m ago
    Oracle Corp. reported fourth-quarter revenue of approximately $19.18 billion and adjusted earnings of $2.11 per share, both beating analyst estimates, and announced expected first-quarter revenue growth of 27% to 29%.
    Open article
  4. Currently Reading3h 7m ago
    Oracle shares tumbled 12% in early Wall Street trading despite reporting quarterly earnings and revenue that exceeded expectations.

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