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Oracle shares have surged this week amid a broader market rally, after a difficult start to the year.
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The cloud computing giant announced a new power agreement for its growing array of data centers, along with new agentic AI products.
Optimism around new deals and AI offerings has made Oracle one of the biggest winners of this week’s rally. Could it help pull the stock out of its recent slump?
Shares of Oracle (ORCL) climbed close to 5% Tuesday, after jumping nearly 13% Monday, after the cloud computing giant announced an expansion of its partnership with Bloom Energy (BE) to power its expanding network of data centers. Oracle also announced a new suite of agentic AI products Tuesday.
The gains have made Oracle the best-performing stock in the S&P 500 for the week so far, at a time when markets rallied broadly amid hopes a deal to end the war in Iran could come soon.
Oracle’s recent advance could herald a turning point in sentiment surrounding the stock after a tough start to the year.
Oracle shares have been pressured for the last several months as the company faced concerns over its reliance on a few small customers and the debt load it has taken on to finance a massive data center buildout.
The company has posted consistently solid earnings, leading analysts to stay bullish on the stock. Oracle has also made some cost-cutting moves to offset its surging expenses, including laying off thousands of employees.
Still, even with Oracle’s 18% gain since the week began, the stock is down more than 16% year-to-date, and has lost roughly 50% from its September highs.
Read the original article on Investopedia