Technology stocks have started February on the back foot, pressured by a growing sense of caution driven by several overlapping themes:
→ Concerns over AI spending. Earnings from Microsoft and Alphabet highlighted enormous capital outlays. With tens of billions being channelled into data centres and chips, investors are increasingly uneasy that AI-related costs may outpace any meaningful revenue return.
→ The rise of “agent-style” AI products (including tools launched by Anthropic in early February) has sparked fears that AI could begin to displace software rather than complement it. This narrative has weighed heavily on the software space, hitting names such as Salesforce, Adobe and Oracle.
Oracle faces additional headwinds from its plans to fund an ambitious $45–50bn investment programme in 2026, which is expected to be financed through a mix of new debt and share issuance.
Against this backdrop:
→ analysts have cut their price targets for ORCL;
→ the share price has dropped below $150 for the first time since May 2025.
Back on 18 December, our technical view of ORCL highlighted four factors suggesting a potential rebound towards the resistance zone marked in blue.
As illustrated by the blue arrow, the stock subsequently:
→ showed tentative signs of recovery;
→ but a failed bullish break above the psychological $200 level quickly reversed sentiment, sending prices back into decline within the previously identified red downward channel.
The sharp acceleration in bearish momentum over the past three sessions could:
→ trigger capitulation among weaker holders, adding to selling pressure;
→ simultaneously draw interest from “smart money”, which may see sub-$150 levels as attractive.
It is also worth noting the convergence of trend-channel lines across different timeframes. This area could act as a support cluster, potentially slowing the fall and allowing the market to stabilise ahead of Oracle’s quarterly earnings report due in early March.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
The FXOpen App is a dedicated mobile application designed to give traders full control of their accounts anytime, anywhere.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
