Oracle Corp. (NYSE:ORCL) is on pace for its worst week since September 2002, with shares down roughly 15% for the week.
The weekly drawdown ranks among the most severe in Oracle’s history as a public company — even though its fiscal fourth-quarter results, reported June 10, beat Wall Street on both the top and bottom lines.
Why Did Oracle Plunge This Week?
Oracle’s revenue rose 20.6% year-over-year to $19.18 billion, edging the Street, while non-GAAP EPS of $2.11 topped the $1.97 consensus and operating margin of 44.8% beat.
The problem was the price of that growth as investors recoil from the cloud giant’s ballooning capital spending and the cash-flow strain behind its artificial intelligence buildout.
