New York, Feb 6, 2026, 11:02 EST — Regular session.
- Oracle shares climbed in morning trading, following a rebound in software stocks after a tough week.
- Investors remain torn over whether the AI capex surge will deliver profits or simply lead to heftier expenses.
- Up next: new U.S. macro data due next week, set to shift rate and growth expectations.
Oracle Corp shares jumped roughly 3.4% to $141.14 in morning trading on Friday, recovering some losses after a steep drop earlier this week among software and cloud stocks. The software-focused IGV ETF climbed about 2.1%, and the Nasdaq-tracking QQQ was up around 1.3%.
This shift is crucial as Oracle’s trading behavior has shifted away from its usual steady enterprise software profile, turning instead into a gauge of the AI arms race’s expense. Investors are scrutinizing which companies foot the bill for data centers — and which actually reap the rewards.
Oracle is now caught up in the same turmoil affecting larger cloud competitors and other software companies. Investors are demanding proof that the spending cycle can sustain itself without cutting into margins or triggering a reset in forecasts.
Oracle dropped roughly 7% Thursday, dragged down alongside other tech giants after Alphabet revealed plans to pour up to $185 billion into capital expenditures in 2026. “This is the first time we’ve seen the large-cap tech companies … go through a really large capex cycle,” noted Tom Hainlin, an investment strategist with U.S. Bank Wealth Management. 1
Stocks found some footing on Friday, but the debate over the rally’s strength remains unsettled. Amazon plunged roughly 9% after announcing plans to boost capital spending by more than 50%. Kristina Hooper, chief market strategist at Man Group, noted the mood has shifted from “unabashed enthusiasm” to “greater discernment.” Despite the bounce, the S&P 500 software and services index was still heading for a weekly loss exceeding 8%, marking its worst stretch since March 2020. 2
Oracle is right at the heart of this. It sells databases and enterprise software, but also battles in cloud services—an area demanding hefty, uneven investments when demand surges.
Product pressures also rattled markets this week. Anthropic’s Claude large language model unveiled a new tool that sparked a selloff in software stocks, as investors questioned if AI “agents” might automate jobs driving software demand. Oracle slipped 5.1% on Wednesday amid the broader downturn. “The selloff … is a manifestation of an awakening to the disruptive power of AI,” said James St. Aubin, chief investment officer at Ocean Park Asset Management. 3
Some investors believe the selloff has gone too far, contending that better tools ought to lower the cost of building and deploying software rather than destroy the sector. Others are preparing for a rougher shift, where pricing power faces pressure and the divide between winners and losers widens faster than models can track.
The rally could stall fast if investors stay wary of capital-heavy AI projects or if demand weakens. Oracle has followed the broader market’s lead, and another selloff in the sector could pull it down again.
Traders are eyeing next week’s macro calendar closely. The U.S. January Employment Situation report has been pushed to Feb. 11 at 8:30 a.m. ET after the federal funding lapse. Meanwhile, the January CPI report is now scheduled for Feb. 13, also at 8:30 a.m. ET. Both releases could shake up rate-sensitive tech stocks. 4
