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(Bloomberg) -- The US Justice Department has closed its antitrust probe into Paramount Skydance Corp.'s $110 billion purchase of Warner Bros. Discovery Inc., according to people familiar with the decision.

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The federal antitrust agency didn't require any changes to the deal, which it had been reviewing for the past several months, according to the people, who asked not to be identified discussing a decision that hasn't been publicly announced.

A group of state attorneys general, led by California, have also been probing the transaction, which would combine two of the five largest Hollywood studios. The states are preparing to sue to block the merger, Bloomberg previously reported.

Justice Department didn't have an immediate comment. Paramount didn't immediately respond to an email seeking comment.

The Justice Department's clearance was expected. The agency under President Donald Trump hasn't sought to block a deal, instead preferring to enter into settlements or allowing mergers to proceed with no conditions.

Paramount head David Ellison met with top antitrust officials, including Acting Assistant Attorney General for Antitrust Omeed Assefi, last month about the deal, according to several people familiar with the meeting. Ellison is the son of Oracle Corp. co-founder Larry Ellison, who is close to Trump.

At the meeting, company executives and lawyers argued the deal would benefit Hollywood and allow the merged entity to better compete against the online streaming services like Netflix Inc., Amazon.com Inc.'s Prime Video and Alphabet Inc.'s YouTube.

Combining Warner Bros. and Paramount would join the two movie studios, two major news networks in CNN and CBS, two rival streaming services with HBO and Paramount+ and dozens of cable networks. Paramount beat out Netflix for the deal after a lengthy bidding war.

The acquisition faces major opposition from Democrats in Washington and many in Hollywood, with actors, directors, producers and writers arguing that the tie-up would result in fewer jobs, higher production costs and less choice for audiences.

Politico earlier reported the Justice Department move.

(Updates with additional details beginning in fifth paragraph.)

Story Continues

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Even a successful transformation into an AI-first world might not provide the kinds of margins that Oracle’s software business once delivered.

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Oracle ORCL shares were down following very strong quarterly results that showed impressive cloud momentum and steady customer diversification beyond OpenAI in its AI-centric backlog.

The negative market reaction reflected its ever-rising capital intensity, with capex for the year raised once again, pushing Oracle's free cash flows further into negative territory. Oracle plans to raise about $40 billion to fund its capex this year through a combination of debt and equity instruments, with dilution risk becoming a bigger risk for the stock. Management expects peak capex outlays through the following fiscal year, with the pace declining in the outer years as the installed base matures.

Unlike the dramatic AI-driven acceleration in Oracle's quarterly numbers, Adobe's ADBE report showed the company monetizing AI through higher engagement, greater user retention, and premium features, in contrast to many free competing offerings that lack enterprise controls, licensing protections, and workflow integration.

Adobe shares have lost more than two-thirds of their value over the last two years, as many in the market are skeptical of the company's ability to maintain profitability in the coming AI world. Uncertainty around leadership transition adds to these headwinds.

The Oracle report was for its fiscal quarter ending in May, which we count as part of the June-quarter tally. We now have five S&P 500 members, including Oracle and Adobe,  that have reported such fiscal May-quarter results. The others are Costco, AutoZone, and Lennar. By the time the big banks report in mid-July, we will have seen Q2 results from almost two dozen index members with fiscal quarters ending in May, including Jabil, CarMax, and Accenture this week.

Looking at 2026 Q2 as a whole, total S&P 500 earnings are expected to increase by +22.2% from the same period last year on +10.9% higher revenues.

The chart below shows Q2 earnings and revenue growth expectations in the context of growth over the preceding four quarters and what is expected over the next three quarters.Zacks Investment Research

Image Source: Zacks Investment Research

The revisions trend remains positive, similar to what we experienced in the last two quarters as well. Aggregate earnings estimates for the S&P 500 index have steadily moved higher since the quarter got underway in April, as the chart below shows.Zacks Investment Research

Image Source: Zacks Investment Research

Q2 earnings estimates have increased for 5 of the 16 Zacks sectors since the quarter began, offsetting negative revisions in the remaining 11 sectors.

Story Continues

The Energy sector has enjoyed the most obvious earnings outlook upgrade, with aggregate earnings estimates for the sector up more than +80% since the start of April. Earnings for the Zacks Energy sector are currently expected to increase by +116.4% from the year-earlier period. Other sectors enjoying favorable estimate revisions include Tech, Basic Materials, Utilities, and Business Services.

Excluding the positive revisions to either the Energy or Tech sectors, the aggregate Q2 revisions trend would have been negative.

Of the 11 sectors whose estimates have been under pressure since the start of April, the ones experiencing the most negative revisions are Transportation, Medical, Consumer Discretionary, Autos, and Construction.

The chart below shows the overall earnings picture on a calendar-year basis.Zacks Investment Research

Image Source: Zacks Investment Research

In terms of index 'EPS', the above growth rates imply $319.96 per index 'share' in 2026, up $264.38 in 2025.

The revisions trend for full-year 2026 is even more positive than we noted in the case of 2026 Q2, with estimates for 11 of the 16 Zacks sectors going up since the start of March 2026. The Energy, Tech, and Basic Materials sectors are the most notable beneficiaries of the improving earnings outlook, but estimates have increased across the board.

The sectors that have suffered negative estimate revisions since the start of March are Transportation, Autos, Consumer Discretionary, Consumer Staples, and Medical.

The chart below shows how full-year 2026 aggregate earnings estimates have evolved over the past year.Zacks Investment Research

Image Source: Zacks Investment Research

2026 Q2 Earnings Season Scorecard

We are in that part of the reporting cycle when the preceding earnings season (2026 Q1, in this case) has not yet fully ended, even as the coming earnings season (2026 Q2) has already begun, as we noted earlier.

Through Friday, June 12th, we have seen fiscal May-quarter results from 5 S&P 500 members – Oracle, Adobe, Costco, AutoZone, and Lennar. Total earnings for these 5 companies are up +18.6% from the same period last year on +11.5% higher revenues, with 80% beating EPS estimates and 60% beating revenue estimates.

The comparison charts below put the growth rates for the companies that have reported with what we had seen from this same group of companies in other recent periods.Zacks Investment Research

Image Source: Zacks Investment Research

The comparison charts below put the Q1 EPS and revenue beats percentages for this group of companies relative to what we had seen from them in other recent periods.Zacks Investment Research

Image Source: Zacks Investment Research

For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>>2026 Q2 Earnings Season Preview: What to Expect

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Oracle Corporation (ORCL) : Free Stock Analysis Report

Adobe Inc. (ADBE) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Investing.com -- Investors have had to assess a mix of earnings disappointments, capital raises, and shifting fortunes, with the week headlined by SpaceX's high-profile public market debut.

Here are Investing.com's stocks of the week:

SpaceX

There is only one place to start. SpaceX made its trading debut on Friday, drawing substantial investor attention given its dominant position in the launch and satellite internet markets.

The rush of investors to get in on the action reportedly caused service disruptions at brokerage Robinhood due to record-breaking traffic on the platform during trading in SpaceX shares following the IPO.

However, CFRA analyst Keith Snyder is less enthusiastic, initiating coverage of the stock with a Sell rating and a $115 price target, striking a cautious tone on valuation.

"This is due to the company's extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity," Snyder said, adding that the investment case requires investors to underwrite several difficult outcomes simultaneously.

Oracle

Oracle shares have slumped 20.6% this week, including an 8.5% drop on Thursday, after the company delivered a mixed fiscal fourth-quarter report.

Cloud infrastructure results came in line with expectations, while applications revenue landed slightly below Street estimates.

Baird analyst Rob Oliver reiterated an Outperform rating and a $215 price target, noting that fiscal 2027 revenue guidance was reiterated even as capital expenditure guidance came in above Street expectations, including additional financing needs.

"AI momentum remains healthy with four deals >$8B signed during the quarter," Oliver said, though he acknowledged that "moving parts around the FY'27 guide and Capex may weigh on shares."

Super Micro Computer

SMCI has tumbled 32.2% in the last week, including a 28% plunge on Wednesday, after the company announced financing transactions totaling up to $7 billion in potential gross proceeds.

The package includes a public offering of 45.5 million common shares at $27.50 apiece and 75 million depositary shares tied to new mandatory convertible preferred stock.

The company said proceeds would help fund component purchases tied to roughly $39 billion in AI server orders received from more than 20 customers in recent weeks, with additional funds earmarked for debt repayment and general corporate purposes.

Intel

Intel has rallied 18.9% over the past week, boosted by a report from The Information that indicated Google and Nvidia are exploring the chipmaker as an alternative manufacturing partner.

Story Continues

According to the report, Google has ordered more than three million tensor processing units from Intel for production in 2028, while Nvidia is evaluating whether Intel's process technology could produce a chip combining four GPUs into a single package.

Marvell Technology

Marvell shares have slipped 4.5% over the week, even after jumping more than 9% on Monday, as gains were pared despite news the chipmaker will be added to the S&P 500 before the June 22 open.

The week also saw the company announce a leadership change, with Dan Durn set to become CFO effective June 15, succeeding longtime finance chief Willem Meintjes. Durn is joining the company from Adobe.

Meanwhile, B. Riley analyst Craig Ellis raised his price target on Marvell this week to $345 from $240 while maintaining a Buy rating, citing a deepening Nvidia partnership, a broader ownership base from index inclusion, and confidence in the incoming CFO.

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The S&P 500 Index ($SPX) (SPY) is up +0.29%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.37%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.41%.  June E-mini S&P futures (ESM26) are up +0.28%, and June E-mini Nasdaq futures (NQM26) are up +0.39%.

Stocks are seeing support again today as reports circulate that a preliminary US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  Iran claimed it would continue to exert control over the Strait of Hormuz even after a new ceasefire agreement.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -1% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

Tech stocks are being undercut today by weakness in chip and software stocks.

In some positive news for stocks, the University of Michigan’s US Consumer Sentiment index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.

The markets are waiting to see how SpaceX will open for trading today after its IPO on Thursday.  Nasdaq says the shares will be released for quotation at 9:50 AM ET today, but it may take some time for regular trading to begin.

The markets are discounting a 4% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.4%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -8 ticks, and the 10-year T-note yield is up +3.2 bp at 4.493%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.7 bp at 2.313%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German Bund yield is down -1.6 bp at 3.015%.  The 10-year UK gilt yield is down -4.2 bp at 4.863%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, is expected to begin trading this morning after raising a record $75 billion in its IPO on Thursday.  The stock is expected to open substantially above its IPO price of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the SpaceX debut, with EchoStar (SATS) down more than -6%, and Rocket Lab (RKLB) down more than -5%.

Chip stocks are trading mostly lower today after Thursday’s sharp rally, with the iShares Semiconductor ETF (SOXX) trading slightly lower after Thursday’s rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include AMD (AMD) and Intel (INTC), with gains of more than +3%.

Adobe (ADBE) is down more than -8% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  ServiceNow (NOW), Atlassian (TEAM), and Workday (WDAY) are all trading down by more than -3%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL) and Southwest Airlines (LUV) are trading up more than +0.5%.

Energy stocks and service providers are mixed despite today’s continued slump in oil prices.  Baker Hughes is down more than -1%, but Occidental Petroleum (OXY) and Marathon Petroleum (MPC) are up more than +1%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22.  Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is down more than -1% after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR). On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

More news from Barchart

S&P Futures Climb as U.S.-Iran Peace Deal Nears, SpaceX Debut in FocusStocks Climb Before the Open on U.S.-Iran Peace Hopes, PPI Data in FocusNasdaq Futures Plunge as Tech Selloff Deepens, U.S. Inflation Data in FocusStocks Set to Extend Rebound Amid AI Dip-Buying

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The S&P 500 Index ($SPX) (SPY) is up +0.58%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.91%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.64%.  June E-mini S&P futures (ESM26) are up +0.70%, and June E-mini Nasdaq futures (NQM26) are up +0.79%.

Stocks are seeing support again today as reports circulate that an interim US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  However, Iran said its leaders still need to make a final decision on the proposed interim peace deal.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -3% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

In positive news for stocks, the University of Michigan’s June US Consumer Sentiment Index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.  Also, the University of Michigan’s June 1-year inflation expectations rate eased to +4.6% from +4.8% in May, and was weaker than expectations of +4.9%.  The June 5-10 year inflation expectations rate eased to +3.4% from +3.9% in May, weaker than expectations of +3.8%.

The markets are discounting a zero percent chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.9%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -3 ticks, and the 10-year T-note yield is up +1.6 bp at 4.477%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.1 bp at 2.306%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German bund yield is down -3.3 bp at 2.999%.  The 10-year UK gilt yield is down -6.6 bp at 4.839%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, started trading today near $160 per share, up nearly +20% from Thursday’s IPO of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the favorable SpaceX debut, with EchoStar (SATS) down more than -9%, and Rocket Lab (RKLB) down more than -7%.

Chip stocks recovered from early losses and are trading mostly higher.  The iShares Semiconductor ETF (SOXX) is up +2.25% today, adding to Thursday’s sharp rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include Arm Holdings (ARM)with a gain of more than +10%, and gains of more than +5% in Qualcomm (QCOM), AMD (AMD), and Intel (INTC).

Adobe (ADBE) is down more than -7% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  Autodesk (ADSK) is down more than -3% and Intuit (INTU) is down by more than -2%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV) are all up more than +3%.

Energy stocks and service providers are trading higher with today’s continued sell-off in crude oil prices.  Occidental Petroleum (OXY), Valero (VLO), and Marathon Petroleum (MPC) are all up more than +2%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22. Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is seeing downward pressure after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Quick Read

Oracle dropped 22.1% after a record Q4 while FY27 guidance rose to $90 billion, creating a classic contrarian entry as forward estimates moved higher. ORCL's $638 billion contracted backlog and 93% cloud revenue growth contrast sharply with MU's historically unsustainable 74.4% margins and quarterly spot-pricing risk. Oracle declared a $0.50 quarterly dividend while Clay Magouyrk confirmed 211 cloud regions are already contracted at profitable rates, combining income with a re-rating opportunity. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Micron Technology (NASDAQ:MU) is the chip stock dominating every feed after its memory business rode the AI cycle to a $1.12 trillion market cap and a 760.37% one-year run.24/7 Wall St.

But here's what you should actually be watching.

The Crowded Trade at the Top of the Cycle

Memory margins do not stay at 74% forever. Micron just reported fiscal Q2 2026 revenue of $23.86 billion, up 196.3% YoY, with GAAP gross margin of 74.4% against a multi-year base where memory margins regularly compress below 30% in downcycles. Capex hit $15.86 billion in fiscal 2025 and is still climbing. CEO Sanjay Mehrotra himself flagged "dependence on sustained AI demand trajectory" as a key risk.

That is a textbook peak-cycle setup wearing AI clothes. The stock is up 249.09% year to date. Reddit's wallstreetbets has been flooded with posts like "+6,476.76% gain on MU LEAPS, should I sell?" When LEAPS screenshots dominate the feed, the crowd has already arrived. You are the exit liquidity. Prediction markets confirm the fatigue: traders price only a 43% probability of MU closing June above $1,000.

The Redirect: A Record-Breaking Cloud Powerhouse on Sale

Oracle (NYSE:ORCL) just delivered a record fiscal Q4 on June 10, 2026, then sold off 22.1% in a week to $184.10. That is the contrarian's window.

Three reasons retirement-focused investors should pay attention while the herd is distracted:

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

1. Backlog visibility memory will never match. Oracle's Remaining Performance Obligations hit $638 billion in Q4, up 363% YoY, with $75 billion tied to prepaid or customer-supplied GPU arrangements. Memory ships and reprices quarterly. Oracle has years of revenue already under contract. Safra Catz called the trajectory "an astonishing quarter" back in September, when RPO was a mere $455 billion.

Story Continues

2. Structural shift, recurring revenue. Cloud is now 52% of total revenue versus 43% a year ago. Cloud Infrastructure revenue grew 93% YoY to $5.787 billion. Multicloud AI Database grew 404% in Q4. Oracle monetizes the same AI buildout lifting Micron, just through subscriptions instead of spot pricing.

3. Guidance raised into the pullback. FY27 non-GAAP EPS guidance was raised to $8.05, representing 18% growth, with FY27 revenue confirmed at $90 billion. Q1 FY27 cloud revenue growth is guided at 58%-64%. The stock has been re-rated lower while forward estimates moved higher. That is a classic contrarian entry.

The Honest Risks, and Why They Don't Break the Thesis

Free cash flow ran to negative $23.686 billion for FY26 on $55.663 billion of capex. Oracle plans to raise roughly $40 billion in FY27 through debt and equity. That is the cost of building 211+ live and planned cloud regions and 72 Multicloud datacenters embedded inside Amazon, Google, and Microsoft. Customers are funding much of it directly. The capacity, per co-CEO Clay Magouyrk, is "all already contracted for at a very profitable rate."

And while the infrastructure compounds, Oracle declared a $0.50 quarterly dividend on June 10, payable July 24. Income, plus a re-rating opportunity. Exactly what a retirement portfolio is built around.

Put Oracle on the watchlist while the headlines chase Micron at $995.87.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

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Quick Read

ORCL stock is off its peak despite trouncing earnings estimates Wall Street is showing signs it is becoming uninterested in the company's ambitions This could spell trouble as Oracle gets increasingly strapped for cash Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Oracle (NYSE:ORCL) recently reported blockbuster earnings, with both the top and bottom lines coming in above estimates. Revenue came in at $19.2 billion ($100 million higher than estimated), and EPS came in at $2.11 ($1.96 estimated). Both of these figures would've led to an equally blockbuster stock market performance, but the opposite has happened.24/7/ Wall St.

Oracle is turning into a "growth at any cost" company, and Wall Street is no longer rewarding it. And if this trend continues, ORCL stock could stay in the red for far longer than you think.

It obviously looks counterintuitive, because investors have historically rewarded profitable growth. However, other figures make revenue and EPS look like a distraction in comparison.

The flashing warning signal for Oracle

The biggest warning signal for Oracle is that the stock market is getting skittish about the AI buildout. ORCL stock reached eye-watering valuations late last year, and this made management confident that going all-in on what the market liked would lead to an even bigger windfall.

Unfortunately, building AI data centers is not easy. Oracle needs hundreds of billions and many years to convert that $638 billion backlog into revenue. It does not have hundreds of billions in cash, so all that money would either have to come in as debt, or Oracle could issue shares. Both of these strategies only work if the stock market keeps rallying and the valuation remains high.

If Wall Street sours on Oracle and the valuation tumbles, everything falls apart.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

Let's say ORCL stock drops 50% from here. A company with a $250 billion market cap will have trouble raising hundreds of billions of dollars in low-interest debt.

Why Wall Street is souring on Oracle

Investors' reaction to Oracle's Q4. FY 2026 earnings release implies that they are no longer going to blindly buy ORCL stock. We're not in 2025 anymore, and investors are much more careful about the stocks they hold. Even Palantir (NASDAQ:PLTR) has declined and is now treading water despite back-to-back earnings beats.

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But why?

If you look at revenue/EPS and then buy stocks off of just those two metrics, you're likely going to underperform. Wall Street is now looking at balance sheets and cash flow instead. Both of these metrics look unpleasant when it comes to Oracle.

Investors like to buy the "pickaxes" of the AI gold rush. Namely, Nvidia (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM), Micron (NASDAQ:MU), among others. These companies are selling the hardware and have high free cash flow metrics. Their balance sheets are getting healthier by the day.

On the other hand, Oracle is the one buying all this hardware, for higher and higher prices. Trailing 12-month free cash flow is -$23.7 billion. Oracle is only "profitable" due to accounting rules spreading out the buildout costs over many years. This is the case with many of its peers.

Rougher times are likely ahead

One of the main reasons behind ORCL stock tumbling by 27% so far into June is that management is doubling down on spending and shareholders will have to fund it. Oracle spent $55.7 billion on data centers and infrastructure in FY2026. Management projects net capex will balloon even further to around $70 billion in FY2027.

To fund this buildout, Oracle raised $43 billion in debt and $5 billion in equity in FY2026. Its total debt surpassed $153.1 billion by the end of February. And to fund the increased capex for next year, Oracle plans to raise another $40 billion in FY2027 through debt and equity. This includes a previously disclosed $20 billion "at-the-market" equity program.

On the flip side, Nvidia announced an additional $80 billion buyback program less than a month ago. It's clear why investors aren't happy with Oracle and other companies that are spending recklessly on this buildout.

I still wouldn't dump ORCL stock. Here's why

The market rally isn't entirely rational, and there are still pockets out there that are seeing success despite limited cash flow.

SpaceX (NASDAQ:SPCX) just had its IPO and is now worth over $2 trillion as of this writing, with other AI companies following suit. This "IPO mania" could spill over into the rest of the market and lead to a final, more euphoric leg of the AI rally. Of course, it's far from guaranteed, but if you're holding ORCL stock after a near-30% fall, it's not a good idea to sell at a loss just as the market starts getting interesting again.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Oracle didn't make the cut. Grab the names FREE today.

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Investing.com -- The broader software complex experienced widespread declines on Friday as fragile investor confidence gave way to a wave of sympathetic selling across the sector. The turn lower continued to arrest a month-long recovery fueled in part by strong corporate results and forward guidance from Snowflake.

The shift in capital allocation reflects a market that remains deeply hypersensitive to any perceived headwind within the enterprise technology layer. Rather than treating recent operational changes at Adobe Systems Incorporated (NASDAQ:ADBE) and heavy capital spending projections at Oracle Corporation (NYSE:ORCL) as isolated events, institutional investors have aggressively unwound positions across the board.

Wall Street analysts noted that Adobe's strategic pivot to a freemium model and Oracle's massive debt-funded data center buildout have fundamentally altered profitability expectations for the near term. Market observers widely concluded that these shifting corporate dynamics are injecting incremental uncertainty into a sector already struggling to defend its valuation multiples.

The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell slightly as it looked to close out a punishing week, dropping over 5% over the past five days, worsening a 15% fall over the past year. However, the damage has not entirely wiped out the sector's recent momentum, as the ETF maintains a 1.5% gain over the past month.

Large-cap enterprise names bore the brunt of the algorithmic and fundamental selling pressure as macro anxieties intensified. ServiceNow Inc (NYSE:NOW) slid around 1.5%, while data warehouse pioneer Snowflake Inc (NYSE:SNOW) dropped close to 1% during a volatile trading session.

Industry bellwether Salesforce Inc (NYSE:CRM) fell over 1%, as even the most deeply entrenched customer relationship software models have not been immune to the prevailing market malaise. Intuit Inc (NASDAQ:INTU) also joined the broader retreat, dropping close to 2.5% as investors trimmed exposure ahead of the weekend.

The downward pressure extended deeply into specialized software segments, prompting sharp losses in design and cybersecurity names. Adobe competitor Figma Inc (NYSE:FIG) lost over 6.5%, while Autodesk Inc (NASDAQ:ADSK) and data security provider Rubrik Inc (NYSE:RBRK) dropped 2.5% each as momentum capital rotated away from application layers.

The aggressive de-risking in software occurred against the backdrop of a broader equity stabilization, highlighting a painful performance divergence within technology. Investors actively favored hardware and semiconductor alternatives over application providers, pushing software back into a selective, sideways trading pattern.

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The persistent weakness across these secondary software names underscores deep-seated fears that generative artificial intelligence tools will ultimately compress seat-based subscription pricing. Until the industry can prove these emerging technologies expand the total addressable market rather than cannibalize it, the sector appears poised to struggle for direction.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The S&P 500 Index ($SPX) (SPY) is down -0.31%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.53%.  June E-mini S&P futures (ESM26) are down -0.15%, and June E-mini Nasdaq futures (NQM26) are down -0.37%.

Stocks are trading lower but are seeing support again today as reports circulate that a preliminary US-Iran peace agreement could be signed as early as this weekend, ending the military hostilities, reopening the Strait of Hormuz, and ending the US blockade on Iran and its oil exports.  Negotiations would then begin on the more intractable issues, such as sanctions against Iran, the release of $24 billion of frozen Iranian assets, and the resolution of Iranian nuclear issues.  However, Iran claimed it would continue to exert control over the Strait of Hormuz even after a new ceasefire agreement.Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.

Stocks surged on Thursday after President Trump said he canceled planned military strikes against Iran, citing "discussions" with Iranian leadership.  He added that a "time and place of the signing" of a negotiated end to the war would "be announced shortly," and the US naval blockade of the Strait of Hormuz "will remain in full force and effect until this transaction is finalized."

WTI crude oil prices (CLN26) are down more than -1% today on hopes for a near-term US-Iran agreement and a reopening of the Strait of Hormuz.

Tech stocks are being undercut today by weakness in chip and software stocks.

In some positive news for stocks, the University of Michigan’s US Consumer Sentiment index rose +4.1 to 48.9, which was stronger than expectations for a rise to 46.0.

The markets are waiting to see how SpaceX will open for trading today after its IPO on Thursday.  Nasdaq says the shares will be released for quotation at 9:50 AM ET today, but it may take some time for regular trading to begin.

The markets are discounting a 4% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +1.4%.  China's Shanghai Composite closed up +1.12%.  Japan’s Nikkei-225 Stock Average closed up +2.81%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -8 ticks, and the 10-year T-note yield is up +3.2 bp at 4.493%.  T-notes are seeing weakness today as the 10-year inflation expectations rate is up +0.7 bp at 2.313%, despite today’s drop in oil prices.  The T-note market remains worried about inflation pressures, which are likely to remain sticky even after the Strait of Hormuz reopens.  The T-note market has some carry-over weakness from Thursday, when demand was lackluster for the Treasury’s 30-year bond auction.

European government bond yields are trading lower.  The 10-year German Bund yield is down -1.6 bp at 3.015%.  The 10-year UK gilt yield is down -4.2 bp at 4.863%.

On Thursday, the ECB, as expected, raised the deposit facility rate by +25 bp to 2.25% from 2.00% and said, "The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth." Swaps are discounting a 37% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Space Exploration Technologies Corp (SPCX), doing business as SpaceX, is expected to begin trading this morning after raising a record $75 billion in its IPO on Thursday.  The stock is expected to open substantially above its IPO price of $135.  The IPO was more than four times oversubscribed, indicating strong demand for the stock.  A strong showing by SpaceX today would be positive for investor sentiment and could help the upcoming IPOs for AI companies Anthropic and OpenAI.

Space-linked stocks are trading lower despite the SpaceX debut, with EchoStar (SATS) down more than -6%, and Rocket Lab (RKLB) down more than -5%.

Chip stocks are trading mostly lower today after Thursday’s sharp rally, with the iShares Semiconductor ETF (SOXX) trading slightly lower after Thursday’s rally of +8.39%.  Thursday’s rally was sparked by signs that AI spending is continuing after Oracle reported quarterly capital expenditures that were higher than expected, driven by increased data center spending.  Chip leaders today include AMD (AMD) and Intel (INTC), with gains of more than +3%.

Adobe (ADBE) is down more than -8% after CFO Dan Durn said he would leave the company on June 15, following news earlier this year that Adobe’s CEO would resign.  The Adobe news put continued downward pressure on software stocks, which were undercut on Thursday by negative earnings news from Oracle (ORCL).  ServiceNow (NOW), Atlassian (TEAM), and Workday (WDAY) are all trading down by more than -3%.

Airline stocks are seeing continued support after oil prices today moved lower, adding to Thursday’s decline.  United Airlines (UAL) and Southwest Airlines (LUV) are trading up more than +0.5%.

Energy stocks and service providers are mixed despite today’s continued slump in oil prices.  Baker Hughes is down more than -1%, but Occidental Petroleum (OXY) and Marathon Petroleum (MPC) are up more than +1%.

Astera Labs (ALAB), CoreWeave (CRWV), Nebius Group (NBIS), Rocket Lab (RKLB), and Teradyn (TER) are seeing support today after Nasdaq announced on Thursday that those stocks will join the Nasdaq 100 Index, effective at the market open on June 22.  Stocks leaving the Nasdaq 100 include Charter Communications (CHTR), Cognizant Technology Solutions (CTSH), Insmed (INSM), Verisk Analytics (VRSK), and Zscaler (ZS).

Travelers (TRV) is down more than -1% after Barclays cut its rating on the stock to underweight from equal-weight due to a downbeat outlook for profits in the property and casualty sector.

Earnings Reports(6/12/2026)

America's Car-Mart Inc/TX (CRMT), Atlantic International Corp (ATLN), Friedman Industries Inc (FRD), Liberty Live Holdings Inc (LLYVA), Pioneer Bancorp Inc/NY (PBFS), Richtech Robotics Inc (RR), Seneca Foods Corp (SENEB), Whitestone REIT (WSR).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.