Oracle Corp. (NYSE:ORCL) stock surged by 5% on Monday, as retail stepped in to buy the dip following the company’s worst weekly performance in over two decades. The Nasdaq is up 3.13% while the S&P 500 has gained 1.90%.The Post-Earnings SelloffCapex Fears Trigger Capital FlightInvestors recoiled from the company's ballooning capital spending and the resulting cash-flow strain. Fiscal 2026 capex hit $55.7 billion, above guided estimates, leading to $23.7 billion in negative free cash flow. Furthermore, Oracle guided fiscal 2027 capex to $90–95 billion and announced plans to raise roughly $40 billion in debt and equity.Wall Street Analysts Stand FirmDespite the market’s initial panic, sell-side analysts are urging investors to look past the short-term noise. BofA analyst Tal Liani reiterated a Buy rating and a $240 price forecast, pointing to a massive 93% growth in cloud IaaS/PaaS revenue.Similarly, Goldman Sachs analyst Gabriela Borges raised her forecast from $228 to $239. Borges kept a Buy rating, noting that the funding is better than the optics. She highlighted that prepayments and bring-your-own-cloud deals cut net cash outlay to about $70 billion.Critical Levels To Watch For ORCL StockOracle is trying to extend a rebound off the April swing low, but the longer-term picture is still mixed after the death cross in January (the 50-day SMA remains below the 200-day SMA). At $193.70, the stock is trading 4.8% above its 50-day SMA ($184.99) and 14.1% above its 100-day SMA ($169.86), but it's still 5.5% below the 20-day SMA ($205.24) and 5.8% below the 200-day SMA ($205.84), which keeps overhead supply in focus.