Oracle slides as it misses Wall Street revenue targets on tough cloud competition

Oracle's shares fell over 8% in premarket trading on Tuesday after its quarterly revenue missed Wall Street expectations.

The company reported Q2 revenue of $14.06 billion, a 9% increase from last year, but below the expected $14.11 billion.

Oracle faces strong competition in the cloud services sector, particularly from industry giants like Microsoft and Amazon.

Despite strong growth in its cloud segment and significant investments in AI infrastructure, Oracle struggles to convert demand into accelerating revenue.

With its price-to-earnings ratio lower than its competitors, the company’s stock may face challenges in achieving its target of double-digit revenue growth for the full year.