New York, Jan 22, 2026, 10:10 EST — Regular session
- Oracle shares climbed early Thursday following two sharp declines.
- This week, Guggenheim stuck with a Buy rating and set a $400 target, maintaining Oracle as a leading software pick.
- OpenAI revealed its energy-cost strategy for the Stargate data-center expansion, with Oracle backing the project.
Shares of Oracle Corp climbed 2.4% to $178.04 Thursday morning, clawing back after a tough two-day slide. The stock fluctuated between $176.63 and $180.64 during the session.
The rebound comes after a 5.85% drop on Tuesday and another 3.36% decline on Wednesday, with the stock closing at $173.88 after dipping to $170.60 during the session. Volume on Wednesday topped 38 million shares, according to Investing.com data. (Investing)
This shift is critical because Oracle now serves as a barometer for the pace at which Big Tech is ramping up AI data centers — and who ends up footing the bill. Traders are closely monitoring if the funding issue eases off or sparks new turmoil following the recent volatility.
Guggenheim’s John DiFucci stuck with a Buy rating on Oracle this week, maintaining his $400 price target and naming it his “Best Idea” in software. He acknowledged the risks linked to OpenAI concentration but said they’re “far outweighed by the opportunity.” DiFucci also urged investors to think long-term—“a few years rather than a few weeks or months.” (Investing)
On Tuesday, OpenAI rolled out its “Stargate Community” initiative designed to cover its energy expenses and avoid pushing up electricity prices for nearby residents. Stargate, a $500 billion AI data-center project spanning several years, counts major backers like Oracle among its investors, Reuters reported. (Reuters)
Oracle’s December quarterly update did little to ease investors’ concerns. The company forecasted sales and profits below expectations and revealed fiscal 2026 capex would jump $15 billion above the $35 billion it projected in September. Melissa Otto, head of research at S&P Global’s Visible Alpha, said the surge in capex and unclear debt requirements are fueling investor uncertainty. CEO Clay Magouyrk suggested models allowing customers to “bring their own chips” to cut upfront costs. (Reuters)
Bondholders have hit Oracle with a lawsuit, accusing the company of withholding details about plans to issue a large amount of new debt linked to its AI expansion. The class action targets investors who purchased $18 billion in notes and bonds from September and points to a later $38 billion loan package for two data centers. Plaintiffs described the bond market’s response as “swift and bracing.” (Reuters)
Yet a bounce in the share price won’t resolve the bigger issue: can AI demand hold up enough to justify the spending? And will rising funding costs — reflected in wider credit spreads, the extra yield investors require for corporate debt — compel Oracle to trim projects? If even a few major clients start pulling back, the stock could take a sharp hit.
Oracle announced in its December earnings report a quarterly cash dividend of 50 cents per share, set to be paid on Jan. 23. Attention will likely stay on financing, customer concentration, and any new legal updates in the coming week. (Q4Cdn)
