Disappointing Oracle results knock $80bn off value amid AI bubble fears
Oracle’s shares tumbled 15% on Thursday in response to the company’s quarterly financial results, disclosed the day before.Roughly $80bn vanish from the value of the business software company co-founded by Donald Trump ally Larry Ellison, falling from $630bn (£470bn) to $550bn and fuelling fears of a bubble in artificial intelligence-related stocks.Shares in the chipmaker Nvidia, seen as a bellwether for the AI boom, fell after Oracle’s.The drop extended a 11.5% fall during after-hours trading that followed results shwoing a lower-than-expected 14% rise in revenues to $16bn in the latest quarter.
Investors were also spooked by Oracle raising forecasts for its already-enormous investment in AI.It expects capital expenditure to jump by 40% to $50bn, with the bulk of the increase aimed at building datacentres.The company is managing a growing debt pile.Oracle’s long-term debt has surged by 25% over the past 12 months to $99.9bn.
Even the cost of insuring its debt rose Thursday as investor confidence in the company waned.The business posted weaker-than-expected quarterly revenues for the three months to the end of November, as sales at its cloud computing business grew at a slower pace than forecast at 34%.Investors were also disappointed by a slower than expected 68% growth in revenues from its infrastructure business.“Frankly, the report was not dramatically bad, but it came to confirm concerns around heavy AI spending, financed by debt, with an unknown timeline for revenue generation,” Ipek Ozkardeskaya, a senior analyst at Swissquote, said.Continued optimism about the potential for AI technology has led to a leap in company valuations in recent months, but there has been a growing spate of warnings from policymakers and business leaders who say stock market valuations could tumble if investors end up being disappointed by the progress or adoption of AI technology.
Oracle became an important tech player creating software for Fortune 500 firms around the world.More recently, it found strength in cloud computing, having become the fastest-growing competitor to Amazon, Microsoft and Google.The surge in AI has also been a boon to Oracle, which has entered lucrative deals with the likes of OpenAI, the maker of ChatGPT.However, there are also growing concerns about how reliant companies are becoming on each other’s financing within the AI ecosystem.Oracle said overnight that its measure of revenue from customer contracts rose by 440% over the past year, but analysts were wary when it emerged that the contracts were driven by new commitments from Meta and Amazon.
“Although these are two solid customers, it will not placate fears that big tech’s AI investments are becoming circular, which leaves it vulnerable to a loss of investor confidence,” Kathleen Brooks, a research director at XTB, said.“Overall, strong contract growth was not enough to placate fears about AI and the huge amount of [capital expenditure] spending required by companies to build AI infrastructure.”
‘It can be brutal’: Gian van Veen learns to fly with the stars after dartitis
Dutch rising star has gone from not knowing ‘how to grip the dart’ to a dark horse for the PDC world championshipIt’s the deciding leg of the European Championship final. Gian van Veen, the 23-year-old from the Netherlands chasing his first major title, has just missed two match darts to win 11-9. Luke Humphries, world No 1 at the time, starts the final leg with a 140.“Oh, you’ve blown it here,” Van Veen replies when asked to describe his internal monologue during that moment in October. “Luke Humphries is not going to crumble under this pressure
‘Dadgummit, let’s freaking go’: 44-year-old grandfather Rivers could start for Colts
The Indianapolis Colts have not ruled out starting Philip Rivers at quarterback after luring the grandfather out of retirement amid an injury crisis.The Colts lost starter Daniel Jones for the season after he tore his achilles on Sunday, while their first-round pick in 2023, Anthony Richardson, is out with a broken orbital bone he suffered in October. With backup Riley Leonard dealing with a knee injury, the Colts turned to the 44-year-old Rivers, who retired at the end of the 2020 season. Rivers, who has been a high school coach since his retirement and recently welcomed his first grandchild, played for the Colts in his final season after a long stint with the Chargers.Colts head coach Shane Steichen is close friends with Rivers and approached him about returning to the NFL
NHL warns top players will not show up for Winter Olympics if venue is unsafe
The NHL says it is “disappointing” that the main ice hockey venue for the Winter Olympics will not be ready until the new year – and warned that its top players will not show up unless the ice is shown to be safe.The men’s and women’s tournaments are expected to be among the highlights of the 2026 Milan-Cortina Games with the NHL stars showing up for the first time since 2014.However, the buildup continues to be marred by construction delays and questions over why the rink at the Santagiulia Arena in Milan is smaller and wider than in the NHL, as well as concerns over the quality of the ice. And while the International Olympic Committee insisted on Tuesday that everything would be ready on time, the NHL commissioner, Gary Bettman, made it clear he was not entirely happy.“The fact that the building at this point still isn’t completed is – and I won’t use any other adjectives – disappointing,” Bettman said
Mets all-time home run leader Pete Alonso reportedly agrees $155m deal with Orioles
For the second day in a row, the New York Mets have seen a beloved star agree to terms with another team.Pete Alonso, the Mets’ all-time leader in home runs, has reportedly agreed to a five-year, $155m contract with the Baltimore Orioles. The news comes a day after the Mets’ long-term closer, Edwin Díaz, reached a three-year deal with the Los Angeles Dodgers.The 31-year-old slugger had been unable to find a long-term deal last season and returned to the Mets on a shorter contract, which he opted out of after this year’s World Series. While the Mets were interested in re-signing him they reportedly never made an offer once other teams were willing to offer longer, more valuable deals to the the first baseman
Etzebeth accepts 12-week ban but claims eye-gouge ‘was never intentional’
Eben Etzebeth, the Springboks lock serving a 12-week ban for eye-gouging Alex Mann of Wales, has claimed it was “never intentional”, contradicting the verdict of an independent disciplinary committee announced last week.In an Instagram post on Wednesday the Sharks second row accepted guilt and apologised, saying “unfortunately mistakes happen”. The 34-year-old double Rugby World Cup winner also appeared to distance himself from the act by drawing attention to “other factors”. Along with three videos accompanying the post, Etzebeth claimed two Welsh players involved in the fracas, along with Mann, changed “the dynamic of the entire picture”.Etzebeth will be sidelined until April after an 18-week ban, for what was deemed a mid-range offence, was reduced to 12 weeks due to mitigating factors including his previous good disciplinary record
Nick Sirianni slams ‘ridiculous’ calls to bench Jalen Hurts amid Eagles’ skid
Philadelphia Eagles coach Nick Sirianni moved quickly on Wednesday to shut down the rising speculation around Jalen Hurts’ job security, calling talk of a potential quarterback change “ridiculous” despite his team’s three-game losing streak and their franchise star’s sudden dip in form.Hurts committed five turnovers – four interceptions and a lost fumble – in Monday night’s 22-19 defeat to the Los Angeles Chargers, punctuating one of the ugliest outings of his career. The final mistake, an interception near the goalline in overtime, sealed another deflating loss for an Eagles side that has averaged just 16 points across the past five games. The 8-5 Eagles have not won since 10 November.Hurts’ performance tied several unwanted marks: the most giveaways by an Eagles player since tracking began in 1978 and the first four-interception game by a Philadelphia quarterback since Michael Vick in 2012
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