Oracle's financing plan and rating changes draw attention, with significant stock price fluctuations

The Economic Observer recently focused on Oracle’s major events, mainly revolving around large-scale financing plans and market rating changes. On February 4, 2026, Oracle announced plans to raise up to $50 billion through bond and equity financing to meet the cloud infrastructure needs of major clients like AMD, Meta, and NVIDIA. However, investors expressed concerns over the surge in debt. Additionally, on February 9, 2026, the stock price surged significantly following an upgrade in institutional ratings, reflecting short-term market optimism about the cloud business outlook. Meanwhile, on February 7, 2026, investment bank TD Cowen noted that Oracle is facing difficulties in financing its AI data center expansion, with several U.S. banks halting loans. The company plans to cut 20,000 to 30,000 jobs and consider selling its healthcare software division, Cerner, to ease financial pressure.

Recent Stock Performance

Oracle’s stock has shown notable volatility over the past 7 days. According to internal database data, the closing price on February 6 was $142.82. Following the rating upgrade on February 9, the stock jumped 9.64% to $156.59. It continued to rise 2.11% on February 10 to $159.89, then pulled back to $157.16 on February 11. The latest closing price on February 12 was $155.65. The total increase over this period was 14.05%, with a volatility range of 19.40%. Trading volume peaked at $6.477 billion on February 10, indicating increased trading activity. Since the beginning of the year, the stock has declined approximately 19.92%, highlighting market caution regarding long-term debt risks.

Institutional Opinions

As of February 2026, 44 institutions have issued ratings on Oracle, with 77% recommending buy or hold, 20% holding, and 3% recommending sell or reduce. The average target price is $276.47, offering a significant upside compared to the current stock price. In a research report released on February 12, Bernstein noted that even if AI clients like OpenAI completely withdraw, Oracle’s valuation floor would be $137 per share, with limited downside from current levels. The optimistic scenario target price could reach $313, emphasizing that market concerns over AI dependency might be overly priced. D.A. Davidson analyst upgraded the rating to “Buy” on February 10, with a target price of $180, believing that the core software business valuation already accounts for risks and that cloud infrastructure has upward growth potential.

The above content is compiled from public information and does not constitute investment advice.