Key Stats for Oracle Stock
- Pre-market Price Change for Oracle stock: 4.8%
- $ORCL Share Price as of Dec. 18: $180
- 52-Week High: $345
- $ORCL Stock Price Target: $291
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What Happened?
Oracle (ORCL) stock is up 5% in pre-market trading after TikTok CEO Shou Zi Chew announced that the company’s U.S. operations will be housed in a new joint venture with Oracle, with Oracle as a key investor and security partner.
The deal, set to close on January 22, creates TikTok USDS Joint Venture LLC, which will be majority-owned by American investors.
Oracle, Silver Lake, and Abu Dhabi-based MGX will each hold 15% stakes in the new entity. ByteDance will retain just under 20% ownership, with existing ByteDance investor affiliates holding another 30%.
Oracle’s role goes beyond just being an investor. The tech giant will serve as TikTok’s “trusted security partner,” responsible for auditing and validating compliance with national security requirements. All sensitive U.S. user data will be stored in Oracle’s U.S.-based cloud computing data centers.
The deal ends years of uncertainty over TikTok’s fate in America. A national security law upheld by the Supreme Court in January required China-based ByteDance to divest TikTok’s U.S. operations or face a ban. President Trump signed an executive order in September approving the proposed deal and delaying enforcement to allow time for finalization.
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What the Market Is Telling Us About Oracle Stock
The sharp jump in Oracle stock shows investors see this as a significant win for the company. Landing TikTok as a cloud customer is a massive validation of Oracle’s infrastructure capabilities, primarily as it competes with Amazon Web Services, Microsoft Azure, and Google Cloud.
Oracle co-founder Larry Ellison, a Trump supporter, has been positioning the company to benefit from growth in AI and cloud computing.
Hosting TikTok’s U.S. data and serving as the security auditor gives Oracle a high-profile reference customer and steady revenue stream from one of the world’s most popular apps, with over 170 million American users.
The deal also strengthens Oracle’s relationship with the Trump administration. Trump personally intervened to keep TikTok operational in the U.S., and Oracle’s involvement was part of the solution.
That political goodwill could help Oracle win other government contracts and navigate regulatory issues.
However, not everyone is convinced the deal solves TikTok’s problems. Senator Ron Wyden criticized the agreement, saying it won’t “do a thing to protect the privacy of American users.” He questioned whether the new structure actually puts TikTok’s algorithm in safer hands.
Small business owners who rely on TikTok for marketing also expressed caution. Tiffany Cianci, who has over 300,000 followers on the platform, said she hopes the new investors maintain the same user experience.
More than 7 million small businesses in the U.S. use TikTok for marketing, and any changes could disrupt their operations.
For Oracle stock, the TikTok deal represents a significant opportunity in the fast-growing cloud infrastructure market. As tensions between the U.S. and China continue to influence tech policy,
Oracle’s position as a trusted American technology provider could unlock more partnerships with companies navigating geopolitical risks.
The deal is set to finalize on January 22, and investors will be watching closely to see whether Oracle can leverage this win into broader gains in cloud market share.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
