Oracle Shares Plunge 11% on Revenue Miss, AI Debt Concerns

• Oracle Corp. shares fell 11% after Q2 revenue of $16.06 billion missed analyst estimates of $16.21 billion.
• Despite an EPS beat, it was aided by a one-time gain; cloud infrastructure growth slightly missed expectations.
• Remaining Performance Obligations (RPOs) surged to $523 billion, but revenue recognition timelines are uncertain.
• Concerns exist regarding Oracle's debt-led AI expansion and reliance on the OpenAI contract.
• The company increased its full-year capital expenditure guidance to $50 billion from $35 billion.

Why It Matters: Oracle's stock drop reflects investor concerns over its AI strategy and financial stability.