Stuck in the Penalty Box: Why This AI Star Canβt Win Over Investors π
March 12, 2025
Oracle $ORCL, one of this cycle's AI darlings, reported earnings on Monday after the market closed.
It didn't go well...
The company reported a 6% year-over-year revenue increase. This was led by an astonishing 51% increase in its infrastructure as a service segment revenue.
Despite this tremendous growth, the market has already priced it in, and the reported numbers weren't enough to appease investors.
In addition, they issued weaker-than-expected forward guidance. This was like adding fuel to a forest fire.
Here's the earnings stats for ORCL π
*click the image to enlarge it
Oracle reported a double miss for the 2nd consecutive quarter and was punished for it. Shares fell 3.10%, with a reaction score of -0.28.
Intra-day, the stock was down more than 7%. It was nasty!
The market has consistently been punishing the stock for its earnings reports. 7 of the last 11 earnings reports have resulted in lower share prices.
This company is doing something wrong...
Here's the setup in ORCL π
If ORCL is below 146, the path of least resistance is lower for the foreseeable future.
This level marks the neckline of a textbook distribution pattern. It also coincides with an earnings gap from Q3 2024.
