**Oracle and Microsoft Stock Updates**
Shares of Oracle (NYSE: ORCL) fell as much as 6.5% on Thursday, October 5, 2023, amid investor concerns surrounding the future of AI, bringing its total decline to over 50% from its peak. As of 1:48 a.m. ET, Oracle stock was down 4.4%, with no specific news driving the decline, though disappointing earnings from a cloud competitor contributed to the negative sentiment.
Meanwhile, Microsoft (NASDAQ: MSFT) reported its fiscal 2026 second-quarter results on Wednesday, revealing revenue of $81.3 billion, a 17% year-over-year increase, and adjusted earnings per share of $4.14, which rose by 24%. Despite surpassing expectations, shares fell more than 12% due to concerns over high capital expenditure of $37.5 billion, primarily for AI infrastructure, which some investors doubt will yield sufficient returns in the long term.
Oracle’s recent revenue of $16.1 billion for its latest quarter grew 14% year over year, with an eye-catching remaining performance obligation of $523 billion, up 438%. The company’s capital expenditures rose to $35.5 billion from $10.7 billion the previous year, aligning valuations closer with its peers at roughly 31 times earnings.
