Oracle Shares Plunge 11% as AI Spending Outpaces Cloud Revenue Growth

• Oracle shares dropped 11%, the steepest decline in nearly 11 months, due to concerns over AI investment returns.
• Capital expenditure for AI data centers surged to $12 billion, with a projected $50 billion for FY26, exceeding estimates.
• Cloud revenue ($7.98B) and infrastructure growth ($4.08B) missed market estimates, raising skepticism.
• Aggressive expansion increased Oracle's debt to $106 billion and credit risk, with negative free cash flow of $10 billion.
• Analysts highlight investor unease over the slow payoff from AI infrastructure and rising debt concerns.

Why It Matters: Oracle's heavy AI investments are not yielding cloud revenue fast enough, causing investor concern and stock drop.