New York, Jan 13, 2026, 10:51 EST — Regular session
- Oracle shares dropped roughly 1.3% in early trading, lagging despite a recent analyst upgrade.
- Goldman Sachs upgraded Oracle to “Buy,” setting a $240 price target, citing expected AI-driven cloud market share gains.
- Investors are zeroing in on funding demands and if new capacity can quickly convert into revenue.
Oracle shares dipped Tuesday despite a bullish shift from Goldman Sachs. Investors remained focused on the short-term strain from the company’s ongoing data-center investments.
Oracle shares slipped 1.3% to $202.10 in early trading.
This matters because Oracle is now a key test of whether the race to expand AI computing power can deliver quick returns—or if spending and financing will outpace profits. Traders have been quick to sell into rallies, particularly when the broader market weakens.
Goldman Sachs raised Oracle’s rating to “Buy” from “Neutral,” setting a $240 price target. The bank highlighted Oracle’s advantage in AI compute workloads and sees its cloud revenue share climbing to around 25% within three years, up from less than 10% today. Analyst Gabriela Borges noted revenue should pick up as more capacity comes online in the 1.2-gigawatt Abilene data-center project, though she cautioned margins might fall short of consensus in the near term. (Investing)
The call centers on Oracle’s push into infrastructure-as-a-service, essentially renting out computing power and storage. This puts Oracle in direct competition with Amazon.com’s AWS, Microsoft’s Azure, and Google’s cloud division, where pricing and capacity often drive deal activity.
Oracle revealed a board shake-up in a recent filing, announcing that directors George H. Conrades and Naomi O. Seligman retired effective immediately after informing the board. The company clarified that neither departure was related to any dispute. (SEC)
Oracle slipped as U.S. stocks fell, with the SPDR S&P 500 ETF and the Invesco QQQ ETF both trending lower in early trading.
The stock is still finding its footing following December’s steep selloff, triggered when Oracle warned its results would miss estimates and revealed a boost in capital spending. This sparked doubts about how fast AI-driven demand could turn into actual profits. (Reuters)
Income-focused investors have a date coming up soon: Oracle announced a quarterly cash dividend of $0.50 per share. The payment is scheduled for Jan. 23, 2026, following a record date on Jan. 9. (Oracle Investor Relations)
The bigger risk is straightforward. If buildouts drag on, major customers delay deployments, or financing costs climb, the company could endure extended margin pressure beyond what bulls anticipate — and the stock already reflects that risk.
Oracle plans to release its fiscal third-quarter results in mid-March, marking the next major event for investors to watch. (Oracle Investor Relations)
