(Bloomberg) -- Oracle Corp. plunged after reporting that cloud sales growth had slowed for a second straight quarter, stoking investors’ concerns that the software maker’s expansion into a competitive market isn’t panning out as expected.

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Cloud revenue rose 25% to $4.8 billion in the three months ended Nov. 30, the company said Monday. That follows a 30% gain in the previous quarter. Infrastructure growth also fell below analysts’ expectations, Bloomberg Intelligence’s Anurag Rana said, slowing from the prior three months.

Known for its database software, Oracle has been focused on expanding its cloud infrastructure business to more forcefully compete with the likes of Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. That initiative to rent out computing power and storage over the internet hit a snag in September when Oracle reported its first infrastructure growth slowdown after more than a year of acceleration.

Shares were down 11% at $103.15 at 10:08 a.m. in New York. They had earlier fallen by as much as 11%, the biggest intraday decline in three months.

Company executives attributed the slowdown to a lack of cloud server and graphics processing capacity, not customer demand. On the earnings call, Chief Executive Officer Safra Catz said the company will raise capital spending to bring more data centers online. She added that the company would have been able to recognize “hundreds of millions of dollars” more in quarterly cloud sales if capacity were available.

Chairman Larry Ellison said he sees cloud infrastructure growing “over 50% for a few years.” Wall Street signaled that it had expected a pickup sooner. “It may take a few quarters for this to resolve, as backlog continues to grow, Rana said.