Oracle shares opened 8.5% higher on Friday before turning down 1.65%, as the market worried about massive capital expenditures and negative free cash flow stemming from AI expansion.
Oracle (ORCL) shares opened 8.5% higher on Friday but later fell 1.65% as investors, despite strong AI demand and better-than-expected earnings, began to worry about the company’s surging capital expenditures and negative free cash flow driven by its AI expansion. The company’s first-fiscal-quarter revenue rose 30% year-over-year to $19.3 billion, with cloud infrastructure revenue surging 121% year-over-year to $7.4 billion, and remaining performance obligations (RPO) reaching a record high of $664 billion. However, capital expenditures more than tripled year-over-year to $28.5 billion, and free cash flow was negative $5.4 billion.
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