Oracle reported better-than-expected quarterly earnings on Tuesday, with total revenue up 22% year-over-year in the third quarter, and net income up from $2.94 billion to $3.72 billion in the same period. Oracle stock spiked by 7% in response to the news.
The upbeat earnings news comes in the midst of simmering market anxiety around AI. It’s a tough market for the companies spending big bucks to build out AI infrastructure. Microsoft, Alphabet, and Amazon all saw shares slide last month, despite relatively strong earnings.
Investors are concerned about the scale of their data center spending. And when it comes to AI spending risk, Oracle is often held up as the poster child. The company has seen its stock drop by more than 50% since a high last September and Bloomberg reported it may be preparing to cut thousands of jobs.
Not that long ago, it seemed investors couldn’t get enough…
