Oracle shares dropped after a report highlighted lower-than-expected profit margins in its cloud business, according to The Information.

The report, citing internal documents, said Oracle generated about US$900 million in revenue from renting Nvidia-powered servers in the three months ending August, but only made around US$125 million in gross profit.

Oracle shares fell as much as 7.1%, before recovering some losses, while Nvidia dipped as much as 0.6%.

The report suggests Oracle lost significant amounts on some Nvidia server rentals, especially for smaller quantities.

🔗 Source: Bloomberg

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