Oracle shares recovered Thursday, climbing 2.4% to $178.04. This followed a steep two-day decline where the stock fell nearly 9%.
Guggenheim analyst John DiFucci bolstered the rebound. DiFucci reiterated a Buy rating and a $400 price target. He labeled Oracle his top software pick, urging investors to focus on the long-term AI infrastructure opportunity.
Investor anxiety persists regarding Oracle's escalating AI investments and debt. A December quarterly update amplified these concerns. The update projected a $15 billion hike in fiscal 2026 capital expenditures.
The company also faces a securities class-action lawsuit from bondholders. The suit alleges a lack of disclosure about substantial new debt related to its AI expansion plans.