Oracle Plunges Nearly 12% in After-Hours Trading as High AI Expenses and Financing Plan Spark Concern

BlockBeats News, June 11th, according to Bitget market data, Oracle closed down 1.10% this morning, and fell 11.80% in after-hours trading.

Investors reacted strongly to the company's continued large-scale AI infrastructure investment and additional financing plan. The main drag factors include: massive AI capital expenditure resulting in deeply negative free cash flow;

The company plans to raise an additional approximately $20 billion for data center and AI expansion;

Market concerns revolve around the high spending and revenue conversion matching, as well as short-term profit pressure.

This is Oracle's recent replay of the "sell-the-fact" market, where similar high-spending news has triggered significant price pullbacks multiple times before. The long-term outlook still depends on the accelerated growth of cloud business, especially IaaS, and margin recovery.