What's Going on With Oracle Stock Monday?

Oracle Corp. (NYSE:ORCL) stock rose more than 2% in Monday’s premarket session as investors returned to the stock after a steep, debt-driven sell-off, while broader market sentiment also improved. Nasdaq futures gained 1.20%, and S&P 500 futures advanced 0.47%.

Oracle Backlog Support Market Rebound

Oracle’s rebound follows weeks of heavy selling sparked by concerns over its aggressive investment in artificial intelligence infrastructure. The stock is down 28.03% year to date after investors questioned the sustainability of its debt-funded capital spending, negative free cash flow and plans to raise up to $40 billion in financing.

However, some investors now appear to view the sell-off as excessive. Oracle’s $638 billion remaining performance obligation (RPO) backlog continues to provide strong long-term revenue visibility, reinforcing confidence that its AI investments could translate into future growth.

AI Buildout Drove Historic Pullback

The recovery comes after one of the sharpest declines in Oracle’s history. The stock fell about 35% in June, its worst monthly performance since September 1990, after rallying nearly 40% in May.

The sell-off followed reports that Oracle spent $16.49 billion on capital expenditures during its latest quarter to expand AI infrastructure, pushing full-year free cash flow to negative $23.7 billion. Wall Street expects capital spending to climb to roughly $92 billion next fiscal year, while Oracle’s debt stood at about $130 billion at the end of May.

Despite those concerns, several analysts reaffirmed bullish ratings and raised their price forecasts in June, citing robust cloud and AI demand. Going back to 1986, Oracle has fallen 30% or more in a single month only eight times, and after the previous seven, the stock usually bounced — a median gain of 16% three months out and 93% a year later, higher roughly two-thirds of the time.

Oracle Price Action

ORCL Stock Price Activity: Oracle shares were up 2.37% at $143.59 during premarket trading on Monday, according to Benzinga Pro data.

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