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Oracle Shares Jump on TikTok Deal News After Rough Stretch

MarketDash Editorial Team
23 hours ago
Oracle stock is rallying Monday as investors digest news that the software giant will become a major owner of TikTok's U.S. operations. The boost comes after weeks of pressure from concerns about the company's expensive AI buildout and data center financing troubles.

Oracle Corp (ORCL) is catching a bid Monday afternoon, and investors have the TikTok deal to thank for it. After weeks of getting beaten down, shares are surging on news that Oracle will become one of TikTok's new U.S. owners. It's a welcome reprieve for a stock that's been nursing some serious bruises lately.

The TikTok Lifeline

Reports last week laid out the structure: a consortium led by Oracle alongside private equity heavyweight Silver Lake and UAE-backed investor MGX has agreed to acquire a minority stake in TikTok. The group is expected to control about 45% of the newly structured entity. Existing ByteDance investors will hold roughly one-third, while ByteDance itself retains a 20% interest. Americans are expected to fill most of the seven board seats in the restructured company, addressing some of the national security concerns that have dogged TikTok for years.

For Oracle, this isn't just a financial play. It's a major validation of its cloud infrastructure business and could lock in a massive, high-profile customer for years to come.

Why Oracle Needed This Win

Monday's rally looks even better when you consider where Oracle has been. Shares had slid in recent sessions as investors grew nervous about the company's aggressive AI buildout. The second-quarter earnings report didn't help matters. Revenue came in at about $16.1 billion, narrowly missing Wall Street's expectations even though adjusted earnings jumped and cloud revenue posted double-digit growth.

Then things got worse. Blue Owl Capital, a key financing partner, stepped back from a planned $10 billion Michigan data center that was supposed to serve OpenAI. That move raised uncomfortable questions: Can Oracle actually fund its AI infrastructure ambitions without stretching its balance sheet too thin? The uncertainty added to technical weakness in the stock, sending shares lower.

What's Next?

Monday's bounce is nice, but Oracle isn't out of the woods yet. The stock remains below recent highs, and there are still major questions hanging over it. Regulatory approval for the TikTok deal is far from guaranteed, and even if it goes through, Oracle needs to prove it can fund its cloud and AI expansion without overextending itself financially.

According to market data, Oracle currently scores highest in Growth at 64.41, while its Momentum (26.97) and Value (11.67) rankings remain relatively weak. That suggests investors see long-term potential but aren't exactly rushing in with conviction just yet.

Oracle shares were up 3.10% at $179.89 at the time of publication on Monday.

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Oracle Shares Jump on TikTok Deal News After Rough Stretch

MarketDash Editorial Team
23 hours ago
Oracle stock is rallying Monday as investors digest news that the software giant will become a major owner of TikTok's U.S. operations. The boost comes after weeks of pressure from concerns about the company's expensive AI buildout and data center financing troubles.

Oracle Corp (ORCL) is catching a bid Monday afternoon, and investors have the TikTok deal to thank for it. After weeks of getting beaten down, shares are surging on news that Oracle will become one of TikTok's new U.S. owners. It's a welcome reprieve for a stock that's been nursing some serious bruises lately.

The TikTok Lifeline

Reports last week laid out the structure: a consortium led by Oracle alongside private equity heavyweight Silver Lake and UAE-backed investor MGX has agreed to acquire a minority stake in TikTok. The group is expected to control about 45% of the newly structured entity. Existing ByteDance investors will hold roughly one-third, while ByteDance itself retains a 20% interest. Americans are expected to fill most of the seven board seats in the restructured company, addressing some of the national security concerns that have dogged TikTok for years.

For Oracle, this isn't just a financial play. It's a major validation of its cloud infrastructure business and could lock in a massive, high-profile customer for years to come.

Why Oracle Needed This Win

Monday's rally looks even better when you consider where Oracle has been. Shares had slid in recent sessions as investors grew nervous about the company's aggressive AI buildout. The second-quarter earnings report didn't help matters. Revenue came in at about $16.1 billion, narrowly missing Wall Street's expectations even though adjusted earnings jumped and cloud revenue posted double-digit growth.

Then things got worse. Blue Owl Capital, a key financing partner, stepped back from a planned $10 billion Michigan data center that was supposed to serve OpenAI. That move raised uncomfortable questions: Can Oracle actually fund its AI infrastructure ambitions without stretching its balance sheet too thin? The uncertainty added to technical weakness in the stock, sending shares lower.

What's Next?

Monday's bounce is nice, but Oracle isn't out of the woods yet. The stock remains below recent highs, and there are still major questions hanging over it. Regulatory approval for the TikTok deal is far from guaranteed, and even if it goes through, Oracle needs to prove it can fund its cloud and AI expansion without overextending itself financially.

According to market data, Oracle currently scores highest in Growth at 64.41, while its Momentum (26.97) and Value (11.67) rankings remain relatively weak. That suggests investors see long-term potential but aren't exactly rushing in with conviction just yet.

Oracle shares were up 3.10% at $179.89 at the time of publication on Monday.

    Oracle Shares Jump on TikTok Deal News After Rough Stretch - MarketDash News