Oracle's extended rally, which has been driven by the company's increasingly central position in the artificial intelligence boom, hit pause on Friday, with the stock tumbling 7%, its worst day since January.
The slide came a day after the software company revealed a long-term outlook, boosted by AI, at an analysts' meeting that was part of the Oracle AI World conference in Las Vegas.
Oracle said on Thursday that it expects $166 billion in cloud infrastructure revenue in the 2030 fiscal year, up from $18 billion in fiscal 2026. The company now sees $21 in adjusted earnings per share on $225 billion in total revenue in fiscal 2030, which represents annualized sales growth of over 31%.
The initial reaction was positive. Oracle shares rose 3.1% on Thursday, continuing a rally that's boosted the company's market cap by more than 160% in two years.
But a hint of skepticism emerged on Friday, with some analysts questioning Oracle's ability to reach its lofty targets.
"It feels like the stock may take a bit of a breather here as investors digest those numbers and try to get comfort around the achievability of long-term numbers," Rishi Jaluria, an analyst at RBC Capital Markets, told CNBC's Seema Mody in an email. Jaluria recommends holding the stock.
Oracle didn't respond to a request for comment.