Oracle stock tumbles after earnings, impacting AI sector

Core Insights - Oracle's shares experienced a significant decline of over 12% in pre-market trading following an earnings report that did not meet analysts' revenue expectations [2][3] - The company's Remaining Performance Obligations (RPO) reached $523 billion, exceeding the Street's expectation of $500 billion, indicating strong future revenue potential [4][5] Financial Performance - Oracle's earnings report revealed a revenue shortfall, continuing a trend from the previous quarter where it also failed to meet expectations for earnings per share and revenue [3] - The company reported $455 billion in remaining performance obligations, which was a 359% increase from the previous year [2] Market Impact - The decline in Oracle's stock negatively affected other AI-related stocks, including Nvidia, AMD, and Coreweave, which also saw drops in their pre-market trading [2] - Analysts suggest that the market reaction to Oracle's earnings report is exaggerated, emphasizing the importance of RPO as a forward-looking metric for the company's future [4][5]