Core Insights - Oracle's shares experienced a decline of up to 6.5%, attributed to a broader sell-off in AI stocks rather than company-specific news [1] - Microsoft reported strong quarterly results, with a 17% year-over-year revenue growth to $81.3 billion, but investor concerns about future AI profitability led to a drop in its stock by over 12% [2][3] - Oracle's recent financial performance included a revenue increase of 14% year-over-year to $16.1 billion and a significant rise in adjusted EPS by 54% to $2.26, but concerns about high capital expenditures persist [5][6] Company Performance - Oracle's remaining performance obligation (RPO) surged by 438% to $523 billion, indicating a substantial backlog [5] - The company spent $35.5 billion on capital expenditures, a significant increase from $10.7 billion in the previous year, raising investor concerns about the return on this investment [6] - Oracle's current valuation is approximately 31 times earnings, aligning it with other major tech companies, making its stock appear attractive given its backlog and lower valuation [6]