Oracle Corp (NYSE:ORCL) shares are moving higher Friday, bouncing after a Thursday selloff tied to OpenAI’s revenue.
- Oracle shares are climbing with conviction. What’s behind ORCL gains?
Oracle Bounces After OpenAI Revenue Report Weighed On Shares Thursday
Thursday’s selling followed a Financial Times report that OpenAI’s annualized revenue falls about $20 billion short of earlier signals, according to financial documents shared with investors. OpenAI recently told investors the figure was approaching $50 billion at the end of September. Media outlets, the FT among them, had put it at $70 billion late last month using information provided to investors.
Oracle has a direct stake in those numbers. The two companies share a five-year, $500 billion agreement to supply compute power, and the shortfall may invite closer scrutiny of it. A gap this big is likely to cool enthusiasm about AI demand. Investors lean on annualized revenue, plus the matching number for rival Anthropic, as their main measure of AI demand. That measure helps justify enormous infrastructure budgets and the rally in public equities.
Oracle’s own products raise the stakes. The company sells cloud infrastructure that is becoming more important for training and operating large language models. As a result, the stock responds to investor interest in cloud and AI infrastructure. Worries about AI demand can pressure Oracle shares even when the contract itself stays the same.
Oracle Hauls Natural Gas by Truck to Power Data Centers
A separate Bloomberg report scrutinized how Oracle keeps its data centers running. Oracle ships natural gas by truck to several sites so projects stay on schedule, people familiar with the work said. Those deliveries carried a Salt Lake City-area project for more than a year while Oracle waited on a pipeline. The method also supports early work at a campus Oracle is building for OpenAI in Shackelford County, Texas.
Oracle is now weighing the same approach for Project Jupiter in New Mexico, where a pipeline delay threatens the schedule. Last month, Oracle sent the project’s developer a force majeure notice. That notice may protect Oracle from certain payments if the delays continue.
Oracle Stock Hovers Near Short-Term Averages but Trails Longer-Term Trends
The chart shows how far the stock still has to climb. Friday’s gain parks Oracle almost exactly on its short-term averages. Shares trade in line with the 20-day simple moving average of $142.10 and the 20-day exponential moving average of $142.43. Longer-term gauges paint a weaker picture. Oracle sits 2.5% under its 50-day SMA of $145.76, 8.8% under its 100-day SMA of $155.86 and 12.1% under its 200-day SMA of $161.74.
The relative strength index stands at 49.85, a near-neutral reading after the stock’s climb from its July swing low. RSI measures whether buying or selling has grown too intense, with high readings signaling overbought conditions and low readings signaling oversold ones. This reading looks more like a reset than an extreme.
The trend setup still weighs on the stock. The 20-day SMA trades beneath the 50-day SMA, a bearish alignment. A death cross, when the 50-day SMA drops under the 200-day SMA, appeared in January and signals a longer-term downtrend. Until Oracle reclaims the 50-day average and then the 200-day average, rallies can fade fast.
Resistance sits at $153.50, a nearby zone where rebounds can stall, close to the 100-day SMA. Support sits at $139, a floor to watch after the stock steadied near the low $140s.
ORCL Shares Are Rises
ORCL Price Action: Oracle shares were up 4.40% at $141.64 at the time of publication on Friday, according to Benzinga Pro.
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