Oracle Corp. (NYSE:ORCL) stock traded lower by more than 1% on Monday as investors weighed concerns over its aggressive artificial intelligence infrastructure buildout.
The stock fell even as Technology led the market. The Nasdaq gained 0.21%, while the S&P 500 slipped 0.12%.
AI Data Center Delay Draws Attention
Despite media reports alleging a six-month delay into 2027 for a New Mexico gas pipeline supporting Project Jupiter, Oracle confirmed Friday that the data center project remains on schedule alongside its key partners.
The issue comes as investors scrutinize Oracle’s massive AI infrastructure expansion.
Michael Burry Adds To Oracle Short
Another concern emerged last week. On Aug. 13, “Big Short” investor Michael Burry said he added to his short position in Oracle at around $152.
Burry has warned that the AI infrastructure boom could eventually create excess computing capacity. He sees 2028 as his base case for when “compute becomes too much.” However, he believes markets could start pricing in that risk sooner.
Oracle expects capital expenditures of up to $95 billion in fiscal 2027. Meanwhile, future data center lease commitments have climbed to about $260 billion, Reuters reported. Free cash flow has also turned negative.
Burry argues that those commitments could become harder to justify if AI capacity eventually exceeds demand.
Technical Analysis
Oracle trades about 1.5% below its 50-day simple moving average of $150.61. It is also 15.5% below its 200-day SMA of $175.47.
However, the stock remains above its 20-day SMA of $136.53.
The 50-day SMA remains below the 200-day SMA after a death cross formed in January. That pattern keeps the longer-term technical picture bearish until Oracle can reclaim key moving averages.
The relative strength index stands at 52.07. That is a neutral reading and suggests the stock is neither overbought nor oversold.
Resistance sits near $149 and the 50-day SMA. Support is around $135, close to the 20-day SMA.
Earnings And Analyst Outlook
Oracle’s next earnings report is estimated for Sept. 8. Wall Street expects earnings of $1.67 per share, up from $1.47 a year earlier. Revenue is expected to rise to $19.13 billion from $14.93 billion.
Oracle carries a Buy consensus rating with an average price forecast of $258.50.
UBS maintained a Buy rating on Aug. 6 but lowered its price forecast to $245. CLSA initiated coverage with a Hold rating and a $145 forecast on July 20. Bernstein maintained an Outperform rating and raised its forecast to $325 on June 11.
Benzinga Edge Rankings
Oracle’s Benzinga Edge Rankings show a sharp split between growth and market performance.
Its Growth score stands at 95.8. However, Momentum is just 6.81, while Value stands at 19.03.
The combination points to strong growth expectations but weak recent price momentum and a less attractive valuation profile.
Top ETF Exposure
Oracle has a 5.87% weighting in the iShares Expanded Tech-Software Sector ETF (BATS:IGV). It also accounts for 5.21% of the First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:TDIV) and 4.49% of the FT Vest Technology Dividend Target Income ETF (NASDAQ:TDVI).
As a result, sizable flows into or out of these ETFs can affect demand for Oracle shares.
ORCL Price Action
Oracle shares were down 1.30% at $148.56 at the time of publication Monday, according to Benzinga Pro data.
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