Oracle Shares Plunge Over 11% After Revenue Miss and $15 Billion AI Capex Surge | News | FLASHOP

Oracle Shares Plunge Over 11% After Revenue Miss and $15 Billion AI Capex Surge
London, 12 December 2025
Oracle shares fell more than 11 percent in after-hours trading after the company reported quarterly revenue of 16.06 billion USD, missing Wall Street expectations of 16.21 billion USD.
The company also announced plans to increase capital expenditure by 15 billion USD, reigniting investor concerns over whether massive AI infrastructure spending can translate into profits quickly enough.
📉 Weak Results Trigger Global Tech Selloff
Oracle’s earnings disappointment sparked a broader pullback across global technology markets:
SoftBank Group fell 6.8 percent in Tokyo
SAP slipped 2.5 percent in European trading
AI-linked giants including Nvidia and Microsoft declined in pre-market trading
The reaction underscores growing sensitivity to any signs that AI-driven capital expenditure may not produce near-term returns, especially as valuations across the sector remain elevated.
🏦 Fed Rate Cut Overshadowed by AI Profitability Fears
The volatility overshadowed the Federal Reserve’s 25 basis-point rate cut on Wednesday, a move that typically boosts equity sentiment.
Instead, investors focused on whether Oracle’s accelerated infrastructure build-out—which includes data centres and cloud capacity for AI workloads—can generate revenue fast enough to justify soaring spending.
Analysts warn that while AI infrastructure is essential, the pace of investment may be outstripping the industry’s ability to monetise AI services in the short term.
🧩 FLASHOP Editorial Perspective
Oracle’s selloff highlights a deeper uncertainty running through global markets:
“AI infrastructure is scaling faster than AI profits.”
As companies race to build the backbone of generative AI, markets are starting to demand clearer evidence of when and how this unprecedented investment will pay off.
For platforms like FLASHOP, the lesson is clear—AI adoption must balance ambition with sustainable economics.