Stocks Rebound as Retail Investors Submit Over $100B for SpaceX IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Stocks rebounded from one-month lows on Thursday as gains for chip producers offset risks of higher interest rates. AI infrastructure stocks continued to carry the momentum ahead of the SpaceX IPO tomorrow. Retail investors are said to have submitted more than $100B for the offering, due to be the largest in history. While the producer prices index pointed to accelerating price increases in May, bets on whether the Fed will raise rates this year were also influenced by President Trump calling off planned strikes against Iran and claiming that final points on a deal "have been, in both concept and great detail, approved by all parties involved."Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Oracleshares fell after the cloud giant's higher-than-expectedovershadowed strong quarterly resultsEatonannouncedits Mobility Group with Danain a Reverse Morris Trust transaction creating a combined company valued at over $10BMicrosoft'sXbox business planning significant layoffs next month,Humanaannounced anto divest its minority interest in end-of-life services provider GentivaNavanshares advanced after the AI-powered travel and expenses platform2. WALL STREET CALLS:Oppenheimerof SpaceXwith an Outperform rating and $195 price target ahead of tomorrow's initial public offeringIntelto Buy at BofA on increased foundry visibilityJefferiesGeneral Dynamicsto Buy on marine segment growthMoffettNathansonChewyafter Q1 reportAlexandria Real Estateto Underweight at Morgan Stanley3. AROUND THE WEB:Microsoftis restricting employees from using Claude Fable 5 because of Anthropic's new 30-day data retention requirements, The Verge saysA German regional court has ruled that Googleis directly liable for false claims in its AI-generated search overviews, The Decoder reportsSea'sShopee is cutting hundreds of developer jobs globally, Bloomberg saysOpenAI is considering significant price cuts for its AI services to compete with rival Anthropic, which it expects to make similar moves, WSJ reportsSoftBank'sdiscussions with potential creditors to raise $6B from a margin loan backed by its stake in OpenAI have stalled, Bloomberg says4. MOVERS:Stitch Fixgained after reporting, with EPS and revenue beating consensusVirgin Galacticincreased afterEvlivenfinished higher afterfrom the Phase 1 ENABLE trial of ELVN-001PureCycle Technologiesclosed lower after announcing aEnsign Groupfell after being targeted inthis week5. EARNINGS/GUIDANCE:Vera Bradleyreportedand backed its guidance for FY27Driven Brandsreportedand reaffirmed its outlook for FY26McGraw Hillreported Q4 results, with CEO Philip Moyeron "the strength of our strategy, the speed of our innovation and the depth of trust that we have from the education community"Lovesacprovidedand narrowed its outlook for FY27DXC Technologyits outlook for FY27 and FY29INDEXES:The Dow rose 929.97, or 1.86%, to 50,848.75, the Nasdaq gained 640.16, or 2.54%, to 25,809.66, and the S&P 500 advanced 127.31, or 1.75%, to 7,394.30.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 188.330
Low
180.00
Averages
309.59
High
400.00
Current: 188.330
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Economic Impact: The project is expected to create over 4,000 construction jobs and 1,500 ongoing project-supported jobs, generating approximately $384 million in economic impact annually during construction and $113 million annually once operational, significantly boosting the local economy.
- Strong Investment Commitment: Project Jupiter has committed $50 million to improve local water systems and $360 million in direct support for schools, infrastructure, and community services, along with $6.9 million for workforce development and habitat restoration, demonstrating a long-term commitment to the community.
- Innovative Energy Strategy: The updated power plan for the project significantly reduces water usage, with the cooling system and fuel cell solution not utilizing public drinking water, ensuring that residential electricity rates remain unaffected, reflecting a strong emphasis on sustainability.
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- Surging Capital Expenditures: Oracle expects to invest between $90 billion and $95 billion in capital expenditures for fiscal 2027, despite facing a total debt of $130 billion and $56 billion in customer pre-payments, indicating an aggressive investment strategy in the AI sector.
- Revenue and Earnings Outlook: While Oracle anticipates a 34% revenue growth for fiscal 2027, the adjusted earnings per share are projected to grow only 18%, highlighting concerns that the lower margins in its AI cloud business may impact overall profitability.
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- Surging Capital Expenditures: Oracle plans to raise $40 billion for capital expenditures, aiming to invest $90 billion to $95 billion in data centers, showcasing its ambition in the AI sector, but raising questions about its profitability amidst such heavy spending.
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- Intensifying Market Competition: As demand for AI services surges, Microsoft and other cloud providers are competing fiercely for infrastructure and capacity, with Microsoft projecting an unprecedented $190 billion in capital expenditures for independent data center expansion in fiscal year 2026, intensifying industry rivalry.
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- Chip Stocks Decline: With Marvell Technology and Intel falling over 9% and 8% respectively, the weakness in chipmakers weighed on the broader market, suggesting that the pressure on tech stocks may impact future investment sentiment.
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- Significant Economic Impact: The project is expected to create over 4,000 construction jobs and 1,500 ongoing project-supported jobs, generating approximately $384 million in economic impact annually during construction and $113 million annually once operational, significantly boosting the local economy.
- Strong Investment Commitment: Project Jupiter has committed $50 million to improve local water systems and $360 million in direct support for schools, infrastructure, and community services, along with $6.9 million for workforce development and habitat restoration, demonstrating a long-term commitment to the community.
- Innovative Energy Strategy: The updated power plan for the project significantly reduces water usage, with the cooling system and fuel cell solution not utilizing public drinking water, ensuring that residential electricity rates remain unaffected, reflecting a strong emphasis on sustainability.
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- AST SpaceMobile Launch Success: AST SpaceMobile's stock jumped 6% after successfully launching three new satellites, which will enhance its cellular broadband network in space, thereby strengthening its competitive position in emerging markets.
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See More
Oracle's AI Cloud Investment Sparks Market Concerns
- Financial Volatility: Following its recent earnings report, Oracle's stock plummeted as the market expressed concerns over high spending on AI cloud infrastructure, which may lead to lower margins; however, one analyst predicts a potential 120% upside if returns on this investment are realized.
- Surging Capital Expenditures: Oracle expects to invest between $90 billion and $95 billion in capital expenditures for fiscal 2027, despite facing a total debt of $130 billion and $56 billion in customer pre-payments, indicating an aggressive investment strategy in the AI sector.
- Revenue and Earnings Outlook: While Oracle anticipates a 34% revenue growth for fiscal 2027, the adjusted earnings per share are projected to grow only 18%, highlighting concerns that the lower margins in its AI cloud business may impact overall profitability.
- Market Competition Risks: Oracle's transition to cloud computing faces challenges, particularly from competitors like OpenAI; although management asserts the company retains unique value in the AI era, investors remain cautious about its ability to differentiate itself in a competitive landscape.
See More
Oracle's AI Cloud Transition Sparks Market Concerns
- Post-Earnings Sell-off: Following its recent earnings report, Oracle's stock fell 2.28% to $188.25, with a market cap of $542 billion, reflecting investor concerns about its transition to AI cloud services, despite a 93% growth in cloud business last quarter.
- Surging Capital Expenditures: Oracle plans to raise $40 billion for capital expenditures, aiming to invest $90 billion to $95 billion in data centers, showcasing its ambition in the AI sector, but raising questions about its profitability amidst such heavy spending.
- Future Revenue Expectations: Despite challenges, Oracle forecasts a 34% revenue growth and an 18% increase in adjusted earnings per share for fiscal 2027, indicating long-term potential in its AI cloud business, especially with remaining performance obligations reaching $638 billion, up 363% year-over-year.
- Market Competition Risks: Oracle's competitive position in the AI cloud market is questioned, particularly regarding its partnership with OpenAI; while management claims a high 20% return on invested capital for cloud infrastructure, it remains to be seen if Oracle can differentiate itself in a crowded market.
See More
Microsoft Abandons $3 Billion Cloud Deal with Oracle
- Deal Collapse Reason: Microsoft's $3 billion cloud infrastructure leasing agreement with Oracle collapsed primarily due to the lack of FedRAMP certification, a mandatory requirement for any cloud framework hosting U.S. government data, highlighting the friction between the two companies over federal compliance standards.
- Intensifying Market Competition: As demand for AI services surges, Microsoft and other cloud providers are competing fiercely for infrastructure and capacity, with Microsoft projecting an unprecedented $190 billion in capital expenditures for independent data center expansion in fiscal year 2026, intensifying industry rivalry.
- Market Reaction: Following the deal's collapse, Microsoft shares fell by 2% while Oracle's stock dropped by 2.3%, reflecting market concerns about the future collaboration prospects of both companies, especially amid rising demand for AI hardware.
- Retail Sentiment Shift: Despite MSFT stock losing 18.6% year-to-date, retail sentiment on Stocktwits has turned 'bearish', with discussions about Microsoft stock soaring over 1,000% in the past 30 days, indicating investor anxiety and heightened scrutiny on the company's future.
See More
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- Dow Hits All-Time High: The Dow Jones Industrial Average rose by 0.64%, reaching a new all-time high, reflecting investor confidence in economic recovery, despite mixed overall market performance indicating divergent views among investors on various sectors.
- Chip Stocks Decline: With Marvell Technology and Intel falling over 9% and 8% respectively, the weakness in chipmakers weighed on the broader market, suggesting that the pressure on tech stocks may impact future investment sentiment.
- Weak Housing Data: U.S. May housing starts fell 15.4% month-over-month to a six-year low of 1.177 million, below expectations of 1.430 million, indicating that the weakness in the housing market could pose challenges to economic growth.
- Oil Prices Plummet: WTI crude oil prices dropped more than 5% to a 3.5-month low due to the U.S.-Iran agreement to reopen the Strait of Hormuz, enhancing expectations for a revival in oil supplies, which may affect the performance of energy stocks.
See More
