U.S. Stock Futures Weaker, Tech Stocks Under Pressure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy ORCL?
Stock futures are weaker in pre-market action, pressured by a dramatic reversal in precious metals, triggering broader selling across risk assets as leveraged positions and safe-haven bets unwind. U.S. markets are starting the week on a soft and unsettled note as investors grapple with lingering volatility and a sharp unwind in previously crowded trades. That metals selloff has bled into equities, with tech stocks in particular showing pressure amid renewed uncertainty around the trajectory of AI demand and monetary policy expectations. This mood has been reinforced by unease over the nomination of Kevin Warsh as the next Federal Reserve chair, with markets recalibrating around how a more hawkish or independent Fed could influence rates and liquidity.The broader backdrop of trading reflects elevated nervousness ahead of a busy week of data and earnings. Key economic releases like the ISM manufacturing index and upcoming U.S. jobs figures are on traders' radar, and central bank decisions in Europe, Australia and the U.K. are also in focus. Cryptocurrencies have also slumped along with broader risk assets, further highlighting the risk-off tone.In pre-market trading, S&P 500 fell 0.43%, Nasdaq futures fell 0.71% and Dow futures rose 0.05%.Check out this morning's top movers from around Wall Street, compiled by The Fly.HIGHER -Oracleup 4% after announcing that it expects to raise $45B to $50B of gross cash proceeds during the 2026 calendar yearUP AFTER EARNINGS -Twist Bioscienceup 7%Napco Securityup 5%Tyson Foodsup 1%DOWN AFTER EARNINGS -Disneydown 2%Revvitydown 2%Aptivdown 1%LOWER -Pharmingdown 16% after the FDA raised an issue with the potential for underexposure in lower weight pediatric patient in a complete response letter to its supplemental new drug application for JoenjaStrategydown 7% after bitcoin fell below $80,000Coterra Energyand Devon Energydown 4% and 3%, respectively, after the companies announced the signing of a definitive agreement to merge in an all-stock transaction
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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.
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
Oracle Corporation Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased or acquired senior notes from Oracle Corporation (NYSE: ORCL) of a class action lawsuit due to false or misleading statements in the Offering Documents filed on March 15, 2024, potentially entitling them to compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, thereby reducing financial barriers for affected investors and encouraging broader participation.
- Debt Risk Disclosure: The lawsuit claims that Oracle failed to disclose its need for significant additional debt to build AI infrastructure at the time of the offering, which could jeopardize the creditworthiness of the bonds, leading to investor losses once the truth emerged in the market.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, highlighting its expertise and success in this legal domain.
See More
Oracle CDS Pricing Signals Market Skepticism
- Bond Market Pressure: Oracle's credit default swap (CDS) pricing surged in November, currently at nearly four times the levels seen in September, indicating market concerns over its debt, which could lead to increased financing costs and impact the company's capital expenditures and investment decisions.
- AI Investment Risks: Oracle and Microsoft face heightened risks due to their $300 billion deal with OpenAI, as market skepticism grows over OpenAI's internal projections of burning through over $100 billion in cash before 2030, potentially undermining investor confidence in AI-related companies.
- Market Divergence: While the bond market adopts a cautious stance on Oracle's outlook, the equity market continues to invest in AI companies, reflecting differing views on the AI sector, which may prompt investors to reassess the value and sustainability of AI firms.
- Alphabet's Advantage: Compared to Oracle and Microsoft, Alphabet has minimal exposure to OpenAI and a stronger financial position, enabling it to better support AI-related capital expenditures, potentially giving it a competitive edge in future market dynamics.
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
Oracle Corporation Securities Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased or acquired senior notes from Oracle Corporation (NYSE: ORCL) of a class action lawsuit due to false or misleading statements in the Offering Documents filed on March 15, 2024, potentially entitling them to compensation.
- Fee Arrangement: Investors joining the class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, thereby reducing financial barriers for affected investors and encouraging broader participation.
- Debt Risk Disclosure: The lawsuit claims that Oracle failed to disclose its need for significant additional debt to build AI infrastructure at the time of the offering, which could jeopardize the creditworthiness of the bonds, leading to investor losses once the truth emerged in the market.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, highlighting its expertise and success in this legal domain.
See More
Oracle CDS Pricing Signals Market Skepticism
- Bond Market Pressure: Oracle's credit default swap (CDS) pricing surged in November, currently at nearly four times the levels seen in September, indicating market concerns over its debt, which could lead to increased financing costs and impact the company's capital expenditures and investment decisions.
- AI Investment Risks: Oracle and Microsoft face heightened risks due to their $300 billion deal with OpenAI, as market skepticism grows over OpenAI's internal projections of burning through over $100 billion in cash before 2030, potentially undermining investor confidence in AI-related companies.
- Market Divergence: While the bond market adopts a cautious stance on Oracle's outlook, the equity market continues to invest in AI companies, reflecting differing views on the AI sector, which may prompt investors to reassess the value and sustainability of AI firms.
- Alphabet's Advantage: Compared to Oracle and Microsoft, Alphabet has minimal exposure to OpenAI and a stronger financial position, enabling it to better support AI-related capital expenditures, potentially giving it a competitive edge in future market dynamics.
See More
