Oracle’s stock climbed 3.4% to $302.10 on Monday, breaking a two-day losing streak as speculation mounted that the software giant could play a role in the potential TikTok deal between the US and China.
President Donald Trump, via Truth Social, indicated that an agreement had been reached concerning “a certain company that young people in our Country very much wanted to save,” widely interpreted as TikTok.
Treasury Secretary Scott Bessent, involved in negotiations with Chinese officials, confirmed that there is a “framework for a TikTok deal,” though he declined to disclose commercial terms.
He emphasized that the deal involved two private parties and that the commercial terms had been agreed upon.
TikTok’s parent company, ByteDance, has faced longstanding national security concerns in the US over possible links to the Chinese Communist Party and access to user data, concerns that intensified with multiple whistleblower reports.
Oracle has frequently been mentioned as a potential partner or buyer in a TikTok divestiture.
Earlier this year, Trump suggested he was open to Oracle founder and CEO Larry Ellison purchasing the video-sharing app, fueling investor optimism in Oracle’s stock.
Strong earnings drive investor confidence
The gains in Oracle shares follow strong results from the company’s fiscal first-quarter earnings, which, while mixed, showed a significant increase in its backlog of contracted work.
Revenue surged to $455 billion in the quarter, up from $138 billion sequentially, driven by four new multibillion-dollar contracts.
The robust backlog and revenue growth have reassured investors about the durability of Oracle’s business, particularly in cloud and AI services.
Citi Research analysts recently upgraded Oracle to “Buy” from “Neutral,” raising their price target from $240 to $410.
They cited “historic” first-quarter bookings as evidence of the company’s strong execution and profitability prospects in AI and enterprise software, signaling confidence that Oracle’s growth trajectory is sustainable.
Ellison tops wealth rankings as Oracle momentum builds
The strong performance of Oracle stock has not only energized investors but also briefly elevated CEO Larry Ellison to the position of the world’s richest person, surpassing Tesla CEO Elon Musk.
This surge reflects a combination of the company’s solid financial performance and market speculation over its potential role in the TikTok divestiture.
Analysts note that while Oracle’s first-quarter earnings contained mixed elements, the company’s sizable backlog and multibillion-dollar contracts demonstrate significant demand for its products and services.
The potential involvement in a high-profile deal like TikTok could further enhance the company’s revenue streams and market positioning.
With both cloud growth and high-profile deal speculation driving investor sentiment, Oracle is firmly in focus.
The stock’s recent rise underscores market optimism about the company’s strategic positioning, financial performance, and leadership under Ellison.
Investors will continue to watch developments on both the TikTok front and Oracle’s ongoing cloud and AI initiatives for signals on future growth and profitability.
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