What Happened?
Shares of enterprise software giant Oracle (NYSE: ORCL) jumped 2.9% in the afternoon session after the stock's positive momentum continued as reports surfaced that its U.S. joint venture, alongside other American investors, secured a controlling interest in TikTok's U.S. operations.
The agreement, which aimed to address national security concerns, was seen as a major victory for Oracle’s cloud business by securing the popular video app as a key customer. This move was expected to solidify Oracle's position as a significant provider of cloud and data security services. The news provided a rebound for the stock after it had experienced selling pressure in previous sessions.
Adding to the day's positive news, Oracle's co-founder, Larry Ellison, also agreed to provide a personal guarantee of $40.4 billion in equity financing for a separate deal involving Paramount Skydance's offer for Warner Bros Discovery.
After the initial pop the shares cooled down to $198.48, up 3% from previous close.
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What Is The Market Telling Us
Oracle’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 7.3% on the news that reports surfaced that TikTok's parent company, ByteDance, agreed to form a U.S. joint venture that would grant a group of American investors, led by Oracle, a controlling interest in the popular app's U.S. operations.
The move aimed to address U.S. national security concerns and prevent a ban of the short-video platform. Under the agreement, a new entity called TikTok US would be formed, with Oracle and partners Silver Lake and Abu Dhabi-based MGX owning the majority stake. This deal positioned Oracle to handle U.S. data protection, algorithm security, and content moderation for the app. The news was seen as a significant win for Oracle's cloud business, securing TikTok as a key, high-margin customer and cementing the company's role as a major provider of cloud and data security services.
Oracle is up 19.5% since the beginning of the year, but at $198.48 per share, it is still trading 39.5% below its 52-week high of $328.33 from September 2025. Investors who bought $1,000 worth of Oracle’s shares 5 years ago would now be looking at an investment worth $3,046.
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