Victoria Bazir
After dropping sharply earlier this week, Oracle Corporation (ORCL) is showing signs of stabilization. The stock gained 1.8% in pre-market trading to around $261.6, recovering from recent lows near $256. The bounce follows renewed optimism around Oracle's data-center expansion in Texas.
Oracle Attempts to Recover After Sharp Decline
Market analyst Julia Newman notes that the stock has been in a downtrend since early October, falling from $310 to the $260 area. Recent price action shows Oracle testing support near $256 before bouncing to $261 in pre-market sessions. However, the stock remains below all major moving averages, stacked between $268 and $283, representing significant resistance.
The technical picture shows immediate support at $256, with short-term resistance between $265 and $270. The next major hurdle sits at $275–$283, while a break below $255 could push the stock toward $245. While Oracle is attempting to bounce, momentum remains weak. Still, if buyers reclaim $270, it might trigger a recovery toward $280–$285.
Data-Center Growth Boosts Market Confidence
The rebound aligns with renewed investor interest following Oracle's data-center expansion in Texas, part of its growing cloud infrastructure strategy. This move is seen as a crucial step in strengthening Oracle's competitive position in the AI compute and cloud services market, where partnerships with companies like OpenAI and Cohere could drive long-term revenue growth. While Oracle faces tough competition from Amazon Web Services and Microsoft Azure, its focus on expanding U.S.-based AI data centers demonstrates commitment to scaling next-generation enterprise infrastructure, which may support valuation stability despite recent market volatility.
Broader Market Sentiment and Outlook
The pullback in Oracle mirrors a broader cooling trend among high-cap tech stocks, as investors rotate capital toward AI infrastructure and energy-related names. Yet the stock's rebound suggests that long-term buyers are defending key technical levels. If broader AI momentum continues, Oracle's fundamentals—particularly its cloud and infrastructure business—may support a gradual recovery through November.
Victoria Bazir
