Oracle: “We have many contracts, not just with OpenAI but also with Meta… Profit margins expected to be 30-40%”

Explanation on Low AI Business Profit Margin Report…Stock Prices Drop After Long-term Profit Forecast Announcement,
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Clay Magouyrk, Oracle CEO
[Reuters Yonhap News File Photo. Resale and DB Prohibited],
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, ‘(Los Angeles = Yonhap News) Correspondent Lim Min-na = Oracle, a major company in the AI cloud sector, expressed confidence in maintaining a high profit margin, stating that it has many clients besides its prominent partner, OpenAI.’,
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, “According to US economic media CNBC and Reuters on the 16th (local time), Oracle’s new co-CEO Clay Magouyrk announced at the ‘AI World Conference’ held in Las Vegas that Oracle has signed new cloud infrastructure contracts worth $65 billion over the past 30 days.”,
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, ‘Magouyrk stated that these contracts comprise “seven different contracts with four distinct clients” and emphasized that “none of these clients is OpenAI.”‘,
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, ‘He further addressed, “We know some people question whether our only client is OpenAI,” stressing that “the fact is we have many clients, not just OpenAI.”‘,
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, ‘He added that Meta, which operates Facebook and Instagram, is one of the four clients who have contracted with Oracle.’,
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, “Oracle gained attention in January by announcing a large-scale AI data center project, ‘Stargate,’ with OpenAI and SoftBank Group at the White House.”,
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, ‘Last month, Oracle surprised the market during its quarterly earnings announcement with results and forecasts that greatly exceeded expectations, causing its stock price to surge.’,
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, ‘However, concerns arose when a report last week stated that the gross profit margin for some of the company’s AI cloud contracts was around 14%, which was lower than expected.’,
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, ‘In response, Oracle clarified that the adjusted gross profit margin for its AI cloud infrastructure division would be between 30–40%, thereby attempting to alleviate investor concerns.’,
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, ‘Following this announcement, Oracle’s stock price closed at $313.00, up 3.09% from the previous day in regular trading on the New York Stock Exchange.’,
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, ‘However, in after-hours trading, the stock price dropped by over 2%, giving back most of the gains.’,
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, ‘Bloomberg and others interpreted that Oracle’s long-term revenue and profit forecasts presented that afternoon failed to meet investor expectations.’,
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, ‘Oracle projected its annual revenue to reach $225 billion and its adjusted earnings per share (EPS) to be $21 by fiscal year 2030.’,
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