Oracle's shares sank over 8% on Tuesday in premarket trading after its quarterly revenue fell short of expectations, hindered by fierce competition among database and cloud services providers. The cloud computing company is on track to lose about $45 billion in market capitalization at current share price levels of $174.

Oracle’s net income rose 26% from a year earlier, to $3.15 billion. Revenue from cloud services and license support sales increased 12%, to $10.8 billion, accounting for 77% of the company’s total, while sales of cloud and on-premises licenses inched up 1%, to $1.2 billion.

Oracle's shares tumbled more than 9% on Tuesday after its quarterly revenue fell short of Wall Street expectations, signaling investor concerns over fierce competition in the cloud business amid booming demand from AI service providers.