Oracle shares have slumped more than 15% at the opening of US trading as investors delivered a sharp reaction to the company’s latest earnings.
The stock is down 15.7% at $188.29, wiping out close to $100 billion from its market value, on rough estimates.
In its latest quarter, Oracle posted revenue of $16.06 billion, just below the analyst consensus of $16.21 billion.
For the current fiscal third quarter, the company projected adjusted earnings of $1.64–$1.68 per share, short of the $1.72 analysts expected, according to LSEG. Oracle also guided for revenue growth of 16–18%, below forecasts of 19.4% and projected revenue of $16.87 billion.
The sell-off is spilling over into other AI-linked names as well. Nvidia is the biggest Dow faller, down 2.7%. Synopsys and Arm Holdings are each down 3.2%, AMD has dropped 3.1%, and Palantir is off 2.8%.
While the S&P rose 0.7%, the Dow Jones, Russell 2000, Equal-Weighted S&P, and Transports indices each climbed more than 1%, noticeably outperforming the Magnificent Seven, which edged up just 0.2%.
