Oracle shares plunged over 7% on Friday, following the company's analyst day presentation where it unveiled ambitious long-term financial targets that were met with skepticism from Wall Street.

At its Financial Analyst Day, Oracle projected its cloud infrastructure revenue would surge to $166 billion by fiscal 2030, up from a previous forecast of $144 billion. The company also raised its total revenue target for fiscal 2030 to $225 billion, with expectations for both revenue and earnings per share to grow at around 30% annually. However, these lofty goals appear to have raised more questions than confidence among investors and analysts.

J.P. Morgan analysts flagged concerns about Oracle's ability to achieve these targets, citing high spending requirements and pressure on free cash flow. The rapid expansion of data center capacity to support AI workloads is capital intensive, and there are doubts about whether customer demand will materialize as quickly as Oracle anticipates.

Additionally, the company's backlog includes a $300 billion multi-year contract with OpenAI, raising questions about the AI startup's ability to fulfill such a massive commitment. These factors combined to dampen investor enthusiasm despite Oracle's optimistic outlook, leading to the significant stock decline as the market reassesses the risk-reward balance of Oracle's AI-driven growth strategy.