Why Oracle Corporation Stock Is Down Today

Oracle Corporation ORCL(NASDAQ:) shares are trading lower Tuesday after the company reported mixed first-quarter financial results.

The Details:

Oracle reported first-quarter financial results after the market close on Monday.

Oracle reported revenue of $12.45 billion, up 9% year-over-year and first-quarter adjusted earnings per share of $1.19, beating a Street consensus estimate of $1.15.

"Is Generative AI the most important new computer technology ever? Maybe!," said Oracle CTO, Larry Ellison. "Self-driving cars, molecular drug design, voice user interfaces—billions of dollars are being invested in AI."

"As of today, AI development companies have signed contracts to purchase more than $4 billion of capacity in Oracle's Gen2 Cloud. That's twice as much as we had booked at the end of Q4."

Several analysts updated coverage and price targets on Oracle after the company's financial results were released:

• UBS analyst Karl Keirstead maintained Oracle with a Buy and lowered the price target from $140 to $135.
• Morgan Stanley analyst Keith Weiss maintained Oracle with an Equal-Weight and raised the price target from $105 to $106.
• Piper Sandler analyst Brent Bracelin reiterated Oracle with an Overweight and maintained a $130 price target.
• Monness, Crespi, Hardt analyst Brian White downgraded Oracle from Buy to Neutral.

Shares of ORCL are down on heavy trading volume. According to Benzinga Pro, more than 32 million shares have been traded in the session, compared to the stock's 100-day average of 10.55 million shares.

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ORCL Price Action: According to Benzinga Pro, shares of ORCL are down nearly 12% at $111.87 at the time of publication.

Image: Courtesy of Oracle Corporation