Oracle sinks on Wall Street
 

Profits cloudy

Oracle disappointed the expectation of the cocaine nose jobs of Wall Street by forecasting current quarter profit below Wall Street estimates.

The company is chucking money at investments in its cloud computing business to take on rivals including Microsoft and Amazon.com.

The company said it will double its capital spending on the cloud segment to $4 billion in fiscal 2022 as it benefits from the pandemic with businesses opting for hybrid-work models.

Increased investment in cloud, however, led Oracle to forecast first-quarter earnings per share of 94 cents to 98 cents, below expectations of $1.03, sending its shares down 4.5 percent in extended trading.

The company has been setting up more data centres to assist businesses as they expand operations, helping it beef up cloud offerings and win high-profile customers such as Zoom.

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