Oracle Tumbles on Fears It Can’t Keep Up With Its Rivals
- Oracle needs cloud revenue growth to keep pace with rivals
- Amazon lapped Oracle long ago as the gulf between them widens
Oracle Sales Beat Estimates on Cloud Demand
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Oracle Corp. shares tumbled the most in more than six years after the company forecast slower sales growth for its cloud revenue, sparking investor fears that it was falling behind rivals competing in the burgeoning sector.
Oracle’s cloud revenue rose 32 percent in its most recent quarter, far below its average growth of 52 percent the past eight quarters. By comparison, peers such as Alibaba Group Holding Ltd., Amazon.com Inc., Microsoft Corp. and Salesforce.com Inc. all posted cloud revenue growth figures in their most-recent quarter largely in line with their eight-quarter trends.