Oracle, 2027year AI investment of 700billion dollars announced, shares 8.48% lower
Oracle 2027year net cash spending related to AI at 700billion dollars, sending shares 8.48% lower. The company also announced 2027year revenue growth guidance of 34% and a 400billion-dollar financing plan.
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Oracle shares fell 6% in intraday trading on 11. The company disclosed that its 8.48quarter results exceeded market expectations. The company announced its future plans separately on the same day.4The company announced its future plans separately on the same day.
Oracle set 2027year revenue growth at 34%. The company identified its AI business as a key growth driver. The company said the guidance reflected its 2027year earnings outlook.
The company projected 2027year net cash spending related to AI at 700billion dollars. It disclosed that this figure exceeded the company's annual operating cash flow of 320billion dollars. The company released an investment plan linked to the spending level.
As a financing measure, the company said it plans to raise 400billion dollars through debt and equity issuance. It said the specific issuance schedule and proportions would be disclosed later. The company plans to supplement the details through related disclosures.
Immediately after the announcement, stock price volatility increased in the market. As of the market close, the stock price had fallen by 8.48%. The company did not separately comment on the impact on trading volume or short-term liquidity.
Sources: The Motley Fool
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