Street View: Oracle’s cloud climb faces financing fog

Cloud computing firm Oracle ORCL.N projected revenue and profit below expectations on Wednesday and said it will boost spending by $15 billion, highlighting that its big AI bets are taking longer to give returns

Co posted fiscal second-quarter revenue of $16.06 billion, below analysts’ average estimate of $16.21 billion- data compiled by LSEG

Shares fall 12.1% to $196 premarket

ORACLE STACKS CHIPS AND RISKS

J.P. Morgan ("neutral," PT: $230) says co’s growing multicloud presence and OCI (cloud infrastructure) expansion should drive long-term revenue growth despite higher spending

Steady demand and strong OCI performance remain key to positive sentiment - JPM

Barclays ("overweight," PT: $310) says ORCL’s strong OCI and RPO (Remaining Performance Obligations)growth support long-term opportunity despite near-term uncertainty around financing and deployment models

Morningstar (fair value: $286) believes co’s expanding multicloud footprint and new sales channel programs will give clients greater flexibility driving faster adoption while database growth remains key to boosting cloud infrastructure's profitability

Baird ("outperform," PT: $300) says co’s accelerated revenue growth, strong margins, and solid competitive position justify its outlook despite concerns over OpenAI exposure and future financing needs