Oracle Corp (NYSE:ORCL) is trading higher on Tuesday as software names bounce back, helped by renewed optimism from Wall Street that the recent AI‑driven selloff may have been overdone. Here’s what you should know.
- Oracle stock is showing exceptional strength. Why is ORCL stock surging?
Why Oracle Is Moving Higher
JPMorgan strategists, led by Dubravko Lakos‑Bujas, said the sharp drop in software stocks over the past week has created an opening for investors. According to their note, markets have been bracing for extreme levels of AI disruption, which they believe are expectations unlikely to play out in the near term.
The teams argue that sentiment has swung too far into pessimism, especially given the solid fundamentals many software companies still have in place. With positioning washed out and fear elevated, they see room for a recovery in stronger, higher‑quality names.
The sector was shaken last week after Anthropic rolled out new plug‑ins for its Claude Cowork agent, reigniting concerns that fast‑advancing AI tools could start eating into the core businesses of traditional software vendors. That wave of anxiety sent the S&P 500 software and services index tumbling as much as 17% in just six sessions before it began to claw back some losses.
More Bullish Calls From Wall Street
Morgan Stanley also weighed in with a positive outlook, pointing to improving revenue trends, better earnings revisions, and potential benefits for large tech companies from a softer U.S. dollar. Katy Huberty, the firm’s global director of research, said the recent drop in software valuations looks driven by sentiment rather than fundamentals.
Datadog’s Earnings Help Lift the Group
Adding to the rebound, Datadog delivered a strong fourth‑quarter report. The cloud‑monitoring company posted earnings of 59 cents per share, easily topping expectations of 39 cents, and reported a $215 million jump in revenue from a year earlier. Datadog also issued upbeat guidance for fiscal 2026, projecting earnings between $2.08 and $2.16 per share.
ORCL Price Action: Oracle shares were up 2.92% at $161.12 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Jonathan Weiss/Shutterstock
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