Major Averages Broadly Lower as Traders Eye Jobs Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy ORCL?
The major averages were broadly lower near noon as traders eyed a key jobs report and additional economic data that could influence the Federal Reserve's interest-rate path next year. Though November's jobs report came in better-than-expected, with an increase of 64,000 jobs for the month, the Bureau of Labor Statistics also reported that 105,000 jobs were shed in October, with the unemployment rate climbing to 4.6%.Record highs earlier in December have given way to a softer backdrop as investors weigh the release of the delayed nonfarm payrolls and other indicators like retail sales and CPI inflation, which were postponed by the longest U.S. government shutdown in history.Looking to commodities, gold edged higher once again, while oil fell sharply ahead of API crude numbers set for release this afternoon.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Fordsaid it expectsto "rationalize" U.S. EV-related assetsPfizerreiterated its guidance for FY25 and provided aPayPalhas submitted applications toApplewill expand its iPhone lineup to seven models by 2027,Databricks said it is raising a greater than, valuing the company at $134B2. WALL STREET CALLS:Roku (ROKU)to Overweight from Underweight at Morgan StanleyLockheed Martinto Equal Weight at Morgan StanleyOktato Buy at JefferiesStubHubto Market Perform at CitizensWells FargoGapto Overweight3. AROUND THE WEB:Oraclesigned roughly $150B of data center leases in the three months ending November 30, raising its total data center and cloud capacity commitments to $248B,Metaearned more than $18B in annual ad sales from China in 2024, making up over 10% of its global revenue, with more than $3B linked to fraudulent ads, like for scams,The U.K. government wants Apple, Google, and others to block explicit images at the OS level by default to protect kids and have adults verify their ages,Stellantishas hired over 1,000 employees for its Windsor, Ontario plant, aiming for 1,500 new jobs for a third shift,Nasdaqis looking to submit paperwork with the U.S. Securities and Exchange Commission to roll out 24/7 stock trading,4. MOVERS:Cementos Pacasmayoincreases in New York after announcingof the Hochschild Group, which controls 50.01% of the companyRezolve AIgains in New York afterannual recurring revenue view of $500M or moreAldeyrahigher after announcing thetarget action date for the reproxalap New Drug ApplicationLightwave Logicfalls after announcing anNavanlower after announcing theAmy Butte5. EARNINGS/GUIDANCE:Vestisfor FY26Vital Farmsfor FY25Organigram, with Executive Chair Peter Amirault calling fiscal 2025 "marked by purposeful growth"Humanafor FY25CSP Inc., with EPS and revenue higher year-over-yearINDEXES:Near midday, the Dow was down 0.53%, or 254.20, to 48,162.36, the Nasdaq was down 0.27%, or 61.48, to 22,995.93, and the S&P 500 was down 0.49%, or 33.55, to 6,782.96.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 309.59 USD with a low forecast of 180.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
Current: 136.480
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Economic Policy Initiatives: Takaichi's agenda includes increasing defense spending and suspending certain food-related taxes, which is expected to stimulate economic growth and enhance consumer confidence, positively impacting Japan's economy.
- Market Reaction: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence in the government's future policies and economic direction.
- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
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- US-India Trade Deal Framework: The U.S. and India released a framework for a trade deal, although India showed resistance to U.S. demands for opening its agricultural market to imports, while Trump removed a 25% tariff on India for purchasing Russian oil, which could impact trade relations and future economic cooperation between the two nations.
- Luckin Coffee's High-End Store Launch: China's Luckin Coffee opened its first high-end store in Shenzhen, marking a shift from its original budget coffee kiosk strategy to directly compete with Starbucks, a strategic move that could attract a more affluent consumer base and enhance brand image and market share.
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- Microsoft's Investment Appeal: Microsoft reported a 66% year-over-year increase in capital expenditures in Q2 2026, and despite a slowdown in Azure's growth, its remaining performance obligation surged 110% to $625 billion, making it attractive for long-term investors with a current P/E ratio of 26, below S&P 500 and Nasdaq-100 averages.
- Oracle's Upside Potential: Oracle's stock is viewed by analysts as having higher upside potential, with a median price target of around $272, indicating an 88% upside over the next 12 months; however, concerns over its AI spending persist, despite a 438% year-over-year increase in its contract backlog to $523 billion, indicating strong market demand.
- Market Focus on AI Spending: Investors are wary of Oracle's AI expenditures, especially after its announcement to raise $50 billion for new data centers, and while its client list includes industry giants like Nvidia and Meta, concerns about OpenAI's funding capabilities may impact its stock performance.
See More
Investors Concerned About Large-Cap Tech Valuations
- Large-Cap Tech Underperformance: As of February 4, 2026, large-cap tech stocks have declined approximately 3%, making them the worst-performing sector, reflecting investor concerns over high valuations and excessive AI spending, which may increase the risk of a market correction.
- Microsoft's Investment Appeal: Microsoft reported a 66% year-over-year increase in capital expenditures in Q2 2026, and despite a slowdown in growth for its AI cloud engine Azure, its remaining performance obligation rose 110% to $625 billion, making it attractive for long-term investors with a current P/E ratio of 26, below the S&P 500 and Nasdaq-100 averages.
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- Caution on AI Spending: Investors are cautious about companies with high AI expenditures, particularly Oracle due to its $300 billion contract with OpenAI, which has raised concerns despite its increasing debt, yet it remains attractive from a valuation perspective.
See More
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- Nvidia Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the highest-valued company globally, which underscores its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle Financial Challenges: Oracle's stock has plummeted over 52% since September, with a market cap of only $440 billion, primarily due to its substantial spending on AI infrastructure and over $100 billion in debt, raising investor concerns about its financial health.
- Revenue Growth Potential: Despite debt pressures, Oracle reported a 14% year-over-year revenue increase in Q2 FY2026 to $16.05 billion, with net income soaring 95% to $6.13 billion, indicating strong growth potential in its cloud computing and software services sectors.
- Future Outlook and Valuation: Oracle's forward price-to-earnings ratio stands at just 19.8, the lowest in over two years, and while analysts are optimistic about its future revenue projections, the company did not make the current list of top investment stocks, reflecting a cautious market sentiment regarding its potential.
See More
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- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt load exceeding $100 billion.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, although this includes a $2.7 billion pre-tax gain from the sale of Ampere Computing.
- Future Growth Potential: Oracle's cloud revenue reached $7.977 billion, a 34% increase year-over-year, and future revenue is expected to rise significantly, with a forward price-to-earnings ratio of 19.8, indicating the stock's attractiveness.
See More
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- Election Outcome: Japan's ruling Liberal Democratic Party (LDP) secured a supermajority in the recent elections, allowing Prime Minister Sanae Takaichi to return to power, which indicates strong voter support for her administration.
- Economic Policy Initiatives: Takaichi's agenda includes increasing defense spending and suspending certain food-related taxes, which is expected to stimulate economic growth and enhance consumer confidence, positively impacting Japan's economy.
- Market Reaction: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence in the government's future policies and economic direction.
- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
See More
Big Tech Loses Over $1 Trillion in Valuation
- Big Tech Valuation Loss: According to FactSet data, Big Tech has collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that may lead investors to reassess the future growth potential of the tech sector.
- US-India Trade Deal Framework: The U.S. and India released a framework for a trade deal, although India showed resistance to U.S. demands for opening its agricultural market to imports, while Trump removed a 25% tariff on India for purchasing Russian oil, which could impact trade relations and future economic cooperation between the two nations.
- Luckin Coffee's High-End Store Launch: China's Luckin Coffee opened its first high-end store in Shenzhen, marking a shift from its original budget coffee kiosk strategy to directly compete with Starbucks, a strategic move that could attract a more affluent consumer base and enhance brand image and market share.
- Dow Jones Surpasses 50,000: The Dow Jones Industrial Average closed above 50,000 for the first time on Friday, driven by a rebound in tech stocks, a milestone that not only reflects a strong market recovery but may also attract more investors to focus on the long-term growth potential of the U.S. stock market.
See More
Investors Show Caution Towards Tech Stocks Amid High Valuations
- Tech Sector Weakness: As of February 4, 2026, large-cap tech stocks have declined about 3%, making them the worst-performing sector, reflecting investor concerns over high valuations and AI spending without returns, potentially increasing the risk of a market correction.
- Microsoft's Investment Appeal: Microsoft reported a 66% year-over-year increase in capital expenditures in Q2 2026, and despite a slowdown in Azure's growth, its remaining performance obligation surged 110% to $625 billion, making it attractive for long-term investors with a current P/E ratio of 26, below S&P 500 and Nasdaq-100 averages.
- Oracle's Upside Potential: Oracle's stock is viewed by analysts as having higher upside potential, with a median price target of around $272, indicating an 88% upside over the next 12 months; however, concerns over its AI spending persist, despite a 438% year-over-year increase in its contract backlog to $523 billion, indicating strong market demand.
- Market Focus on AI Spending: Investors are wary of Oracle's AI expenditures, especially after its announcement to raise $50 billion for new data centers, and while its client list includes industry giants like Nvidia and Meta, concerns about OpenAI's funding capabilities may impact its stock performance.
See More
Investors Concerned About Large-Cap Tech Valuations
- Large-Cap Tech Underperformance: As of February 4, 2026, large-cap tech stocks have declined approximately 3%, making them the worst-performing sector, reflecting investor concerns over high valuations and excessive AI spending, which may increase the risk of a market correction.
- Microsoft's Investment Appeal: Microsoft reported a 66% year-over-year increase in capital expenditures in Q2 2026, and despite a slowdown in growth for its AI cloud engine Azure, its remaining performance obligation rose 110% to $625 billion, making it attractive for long-term investors with a current P/E ratio of 26, below the S&P 500 and Nasdaq-100 averages.
- Oracle's Potential Upside: Oracle's stock is rated by Wall Street analysts to have an 88% upside potential with a target price of around $272, despite investor concerns over its AI spending; its contract backlog surged 438% year-over-year to $523 billion, indicating strong demand for cloud computing.
- Caution on AI Spending: Investors are cautious about companies with high AI expenditures, particularly Oracle due to its $300 billion contract with OpenAI, which has raised concerns despite its increasing debt, yet it remains attractive from a valuation perspective.
See More
Market Dynamics Analysis of Nvidia and Oracle
- Nvidia Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the highest-valued company globally, which underscores its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle Financial Challenges: Oracle's stock has plummeted over 52% since September, with a market cap of only $440 billion, primarily due to its substantial spending on AI infrastructure and over $100 billion in debt, raising investor concerns about its financial health.
- Revenue Growth Potential: Despite debt pressures, Oracle reported a 14% year-over-year revenue increase in Q2 FY2026 to $16.05 billion, with net income soaring 95% to $6.13 billion, indicating strong growth potential in its cloud computing and software services sectors.
- Future Outlook and Valuation: Oracle's forward price-to-earnings ratio stands at just 19.8, the lowest in over two years, and while analysts are optimistic about its future revenue projections, the company did not make the current list of top investment stocks, reflecting a cautious market sentiment regarding its potential.
See More
Nvidia vs. Oracle: Compelling Growth Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization above $4 trillion, making it the largest company globally, reflecting its dominance in high-performance AI applications.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt load exceeding $100 billion.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, although this includes a $2.7 billion pre-tax gain from the sale of Ampere Computing.
- Future Growth Potential: Oracle's cloud revenue reached $7.977 billion, a 34% increase year-over-year, and future revenue is expected to rise significantly, with a forward price-to-earnings ratio of 19.8, indicating the stock's attractiveness.
See More
