ETFs Linked to Oracle Draw Attention Following Stock Decline Post-Earnings
Oracle's Earnings Impact: Oracle shares fell approximately 13% in premarket trading due to disappointing guidance for the current quarter and an increased spending outlook following its latest earnings release.
ETF Exposure to Oracle: Oracle is a significant holding in 452 exchange-traded funds (ETFs), which collectively own over 261 million shares, highlighting the stock's influence on various funds.
Top ETFs with Oracle Holdings: The top 10 ETFs with the highest allocations to Oracle include Pacer Data and Digital Revolution ETF (9.89%) and Direxion Daily Technology Top 5 Bull 2X ETF (8.96%), among others.
Additional ETFs to Watch: Other software-focused ETFs that may be affected by Oracle's earnings include IGV, IGPT, and XSW, indicating broader market implications for the software sector.
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- Market Retreat: The S&P 500 Index fell by 0.40%, the Dow Jones Industrial Average by 0.51%, and the Nasdaq 100 by 0.28%, indicating a retreat in market sentiment as rising oil prices weigh on investor confidence and raise concerns about future economic prospects.
- Strong Employment Data: Initial jobless claims in the U.S. rose by 10,000 to 200,000, indicating a stronger labor market than the expected 205,000, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, showcasing economic resilience.
- Productivity and Costs: U.S. Q1 nonfarm productivity increased by 0.8%, surpassing expectations of 0.6%, while unit labor costs rose by 2.3%, below the anticipated 2.5%, which may influence future inflation expectations and Fed policy decisions.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at “mildly restrictive” levels, suggesting that if inflation trends worsen significantly, a reassessment of policy would be necessary, with markets pricing in only a 6% chance of a rate cut at the next FOMC meeting.
- Tech Stock Surge: Datadog reported Q1 revenue of $1.01 billion, exceeding the consensus of $957.8 million, leading to a stock price increase of over 30%, which boosts overall market sentiment and reflects strong recovery in the tech sector amid high investor expectations for artificial intelligence.
- Stable Labor Market: Initial jobless claims rose by 10,000 to 200,000, lower than the expected 205,000, indicating resilience in the labor market, while continuing claims unexpectedly fell by 10,000 to a 2.25-year low of 1.766 million, further enhancing market confidence.
- Crude Oil Price Decline: WTI crude oil prices fell by more than 4% as markets await updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, negatively impacting energy producers and leading to widespread declines in related stocks.
- Fed Policy Outlook: Boston Fed President indicated that interest rates should remain at
- Nasdaq Milestone: The Nasdaq 100 index rose by 0.20%, achieving a new all-time high, driven by strong performance in tech stocks, particularly Datadog, which surged over 30% following its blowout earnings report.
- Oil Price Decline: WTI crude oil prices fell by more than 4% today as the market awaits updates on a potential US-Iran peace deal that could reopen the Strait of Hormuz, impacting global oil prices and supply chains.
- Stable Labor Market: Initial US unemployment claims rose by 10,000 to 200,000, below expectations of 205,000, indicating labor market resilience, while continuing claims unexpectedly fell to a 2.25-year low of 1.766 million.
- Strong Corporate Earnings: So far, 84% of the 411 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to climb 12% year-over-year, reflecting ongoing improvements in corporate profitability, although growth outside the tech sector is only 3%.
- Recruitment Process Optimization: The integration of Eightfold AI Interviewer with Oracle Fusion Cloud Recruiting allows hiring teams to seamlessly incorporate autonomous interviewing capabilities into their existing workflows, enhancing recruitment efficiency and reducing the risk of overlooking qualified candidates.
- Talent Intelligence Enhancement: Powered by an AI-driven Talent Intelligence Engine, Eightfold's matching score system assesses candidates' skills fit and career trajectory, helping hiring teams make more informed decisions that ultimately improve employee retention rates.
- Hiring Cycle Compression: The integrated system significantly shortens hiring cycles, enabling teams to complete recruitment processes quickly without sacrificing evaluation quality, thus meeting the urgent demand for efficient hiring in enterprises.
- Promotion of Fair Evaluation: By employing a structured, skills-based framework, the system ensures that every candidate receives consistent assessments, with AI insights supporting final hiring decisions, thereby enhancing the fairness of the recruitment process.
- Price Fluctuation Analysis: VT's 52-week low is $117.44 and high is $154.33, with the latest trade at $154.29, indicating price stability near the high, which may influence investor buying decisions.
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- ETF Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, reflecting market changes in ETF demand.
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- Strong Financial Performance: Oracle reported total revenue of $17.2 billion for Q3 FY2026, marking a 22% year-over-year increase, with cloud revenue surging 44% to $8.9 billion, highlighting robust demand in AI infrastructure services, particularly with infrastructure-as-a-service growing 84% year-over-year.
- Record Contract Backlog: Oracle's remaining performance obligations (RPO) reached $553 billion at the end of the quarter, more than quadrupling year-over-year and increasing by $29 billion from the previous quarter, indicating strong market demand in the AI sector that exceeds its current market capitalization of $525 billion.
- Improved Profitability: The company's gross margin stood at 32%, surpassing the 30% guidance, while non-GAAP earnings per share rose 21% to $1.79, marking the first quarter since 2009 where both organic revenue and adjusted EPS grew by over 20%.
- Debt Financing Risks: Despite Oracle's AI capacity expansion being supported by customer prepayments, its long-term debt of approximately $125 billion and negative cash flow raise investor concerns, particularly regarding its reliance on a $300 billion compute contract with OpenAI, which could impact future financial stability.











