Oracle cloud business growing while other units shrink

Oracle (ORCL) shares continued to slide Tuesday morning after reporting a slight miss on its fiscal second quarter revenue - $14.06 billion vs. expectations of $14.12 billion - and adjusted earnings estimates - $1.47 per share vs. expectations of $1.48.
D.A. Davidson senior software analyst Gil Luria speaks with Seana Smith and Brad Smith on Yahoo Finance's Morning Brief to give his take on Oracle's latest earnings figures.
"They're growing the cloud businesses very fast, but about 60% of their business is still declining. So, it's a cloud transition story that should be accelerating - it hasn't quite yet," Luria explains. "And then the other very notable thing is that their CapEx is going to double this year. It's going to be more than 25% of revenue is going to go into CapEx."
Luria also comments on the energy infrastructure build-out more hyperscalers are investing into to power their AI data centers. While popular social media platform TikTok faces a ban in the US if its Chinese parent company ByteDance doesn't divest, Luria weighs in on the impact a potential TikTok ban could have on Oracle's business: "It could be a pretty decent hit if they lose that TikTok business."
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