Software Rally Lifts Oracle Nearly 3% on Datadog’s $0.59 Q4 EPS Beat
Oracle shares climbed nearly 3% Tuesday as software stocks rallied on sentiment that last week’s AI-driven selloff was overdone following Datadog’s strong report. Datadog posted Q4 EPS of $0.59 versus $0.39 expected, saw a $215 million revenue rise year-over-year and guided FY26 EPS to $2.08–2.16.
1. Oracle Stock Surges on Software Rebound
Oracle shares advanced 2.97% Tuesday as the S&P 500 software and services index clawed back losses after tumbling up to 17% over six sessions. The bounce reflects a rotation back into higher-quality names after extreme AI disruption fears weighed on traditional software vendors.
2. Wall Street Sees AI Selloff Overdone
JPMorgan strategists argued that markets had priced in excessive AI-driven disruption given the solid fundamentals that many software firms still maintain. Morgan Stanley added that improving revenue trends, upward earnings revisions and a softer U.S. dollar provide additional tailwinds for large tech companies.
3. Datadog Q4 Beat Fuels Sector Rally
Datadog delivered Q4 EPS of $0.59 versus $0.39 consensus and reported a $215 million year-over-year revenue increase. The company also issued upbeat FY26 guidance of $2.08–2.16 per share, reinforcing investor confidence in peers like Oracle.