Can Oracle and Palantir Stock Extend Yesterday’s Gains?
Yesterday stock markets turned higher, with tech shares such as Palantir and Oracle stock making hefty gains, but can they keep the bullish momentum today?
Financial markets remained resilient yesterday despite the U.S. imposing a 25% tariff on steel and aluminum imports from Europe and Canada. In response, both Canada and Europe introduced retaliatory tariffs on U.S. exports, while President Trump confirmed that additional tariffs on vehicles and auto parts will take effect on April 2.
Despite these trade tensions, the stock market sentiment remained stable, with Oracle gaining 4% and Palantir opening 7% higher, suggesting that investors are becoming more accustomed to the ongoing tariff war.
Palantir Stock Daily Chart – Buyers Face the 50 SMA
Palantir (PLTR) had been under significant selling pressure, dropping 40% off the highs to $74.57 on Monday due to concerns over reduced government spending. The stock had previously surged 800% from early 2024 to its February 20 peak of $125.40 but entered a sharp downtrend following an 8% budget cut to the Pentagon. Given Palantir’s heavy reliance on government contracts, the budget cut fueled investor uncertainty.
Since February, PLTR has lost 40% of its value, erasing a substantial portion of its previous gains. However, the 100-day SMA provided strong support, and following Tuesday’s bounce, the stock saw a significant rally yesterday. Currently, buyers are facing resistance at the 50-day SMA, and today’s session will determine whether the stock can break above this level.
Oracle Daily Chart – Bounces Off the 200 SMA Despite Earnings Miss
Oracle also experienced heavy volatility, initially falling to $147.70 on Tuesday after missing earnings expectations. The stock had previously peaked above $190 before dipping below its 200-day SMA following the release of its Q3 2024 earnings report. However, it quickly recovered, climbing back above this key moving average by the end of the session.
While Oracle’s revenue grew 6% year-over-year to $14.13 billion, it missed market expectations of $14.38 billion. Besides that, adjusted earnings per share came in at $1.47, slightly below the anticipated $1.49.
Despite these setbacks, Oracle’s cloud services and license support revenue increased 10% to $11 billion, although it still fell short of the $11.21 billion forecast. The company responded by raising its quarterly dividend by 25% to 50 cents per share, a move likely to attract more investors.
Additionally, Oracle secured key cloud contracts with major tech players, including Nvidia, SoftBank, and OpenAI, strengthening its position in AI and cloud infrastructure. These deals, combined with President Trump’s new AI initiatives, could provide a long-term boost to the company’s growth.
Stocks Show Resilience Amid Trade and Earnings Pressures
While trade tensions remain a key risk, investors appear to be focusing on earnings and growth potential, particularly in the tech and AI sectors. Oracle’s cloud expansion and Palantir’s defense sector positioning will be closely watched as both stocks attempt to sustain their rebounds.
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