Shares of Oracle Corp. (ORCL) - Get Report  fell 3.5% in premarket trading on Friday after the computer software giant signaled slower growth in its cloud business.

The stock initially rose after Oracle reported better-than-expected earnings and revenue in its fiscal first quarter on Thursday but then declined after the company said it expected total cloud revenue to increase 39% to 43% in the fiscal second quarter, down from last quarter's growth of 51.4%.

The company, however, said it expects cloud bookings to grow.

"I expect Q2 cloud booking growth to be strong or stronger than our Q1 growth rate," co-CEO Mark Hurd said on an a call after the earnings were released.

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