Stuck in the Penalty Box: Why This AI Star Can’t Win Over Investors 📊

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 👇

*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 👇

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.

Thank you for reading.

- The Beat Report Team