Oracle stock sinks on surging AI costs, cloud revenue falls short

• Oracle shares plunged, erasing over $100 billion in market value, as increased AI spending outpaced immediate cloud revenue translation.
• Capital expenditures for AI data centers surged to $12 billion, exceeding analyst forecasts, with a projected $50 billion by May 2026.
• Cloud sales and infrastructure revenue increased but slightly missed analyst estimates, contributing to investor concerns.
• Oracle's credit risk hit a 16-year high, and free cash flow was negative $10 billion, reflecting skepticism about its debt-fueled AI build-out.
• Remaining performance obligation (bookings) jumped over fivefold to $523 billion, surpassing estimates, signaling future growth.

Why It Matters: Oracle's stock drop highlights risks of massive AI infrastructure spending for tech giants.