Oracle Corporation saw its shares climb 9.6% to $156.59 in active after-hours trading Monday, driven by a positive analyst reassessment. The move follows a challenging period for the enterprise software and cloud infrastructure provider, with its stock price still approximately 55% lower than its 52-week high.
Diverging Analyst Views
D.A. Davidson raised its rating on Oracle to "buy" from "neutral," maintaining a $180 price target. Analyst Gil Luria suggested the market had overcorrected to the downside. Conversely, Melius Research downgraded the stock to "hold" with a $160 target, citing significant concerns over the company's cash flow trajectory as it embarks on a major expansion.
The company plans to invest between $45 billion and $50 billion in 2026 to grow its Oracle Cloud Infrastructure business, targeting demand from major technology firms. This ambitious funding plan, expected to utilize both debt and equity—including an at-the-market share offering—has sparked debate about the timeline for returns on these substantial AI data center investments.
Market Context and Upcoming Catalysts
The rally occurred as technology stocks stabilized following recent sector volatility. Options activity indicated moderately bullish sentiment, with calls outpacing puts. Investor attention now shifts to broader economic indicators that could influence rate-sensitive technology names.
Key U.S. economic reports are imminent, including the January jobs data on February 11 and Consumer Price Index figures on February 13. Unexpected readings on inflation or employment could sway market sentiment for Oracle and its peers as earnings season progresses.
Oracle also highlighted ongoing customer adoption, noting a Canadian hospital consortium migrating its health record system to Oracle Cloud Infrastructure and testing a clinical AI agent for full deployment later this year.
