ORCL: Oracle Stock Gains on News Company Is Teaming Up with A16z to Own TikTok in US

Veteran software maker has doubled its valuation in the past six months. It’s been enjoying waves of pretty great news. Now this?

🔥 Oracle Stock Powers Up

• Oracle stock ORCL climbed 1.5% Tuesday after a Wall Street Journal story said the software giant is included in a potential consortium that will control the lion’s share of the US-based TikTok entity.
• Other big-shot participants in the group include pioneer venture capital titan Andreessen Horowitz (a16z) and private-equity firm Silver Lake. These US heavyweights, alongside some more, will control an 80% share of TikTok’s US business. The other 20% will be owned by Chinese investors.
• The effort will result in the founding of a new private company that will launch a new app and will ask existing TikTok users to make the shift, likely sunsetting the old one.

🎁 Big Deal in the Works

• Currently, Donald Trump’s extensions have made it possible for TikTok to remain available despite a January 2025 ban. "We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up," Trump told reporters on Tuesday.
• Oracle is expected to keep the TikTok hosting on US territory – one of the bigger concerns that led to the ban as lawmakers feared that US consumers’ data was leaking to China.
• On the Chinese side, officials confirmed a framework agreement, but stopped short of saying a deal has been reached, adding that they’ll work to protect their companies’ interests.

🔔 Oracle’s on a Roll

• Oracle’s involvement in such a big-ticket initiative acts as another boost to its share price. Lately, the company has been enjoying a flurry of good news and that’s seen in the stock’s appreciation.
• Shares of the tech mainstay are up roughly 100% over the past six months. But the bigger chunk of that increase was clocked in the past few weeks.
• Oracle made history earlier this month, rocketing more than 30% in a single session and adding more than $255 billion to its market cap. All thanks to $455 billion in contracted work, i.e. future revenue ($300 billion of that is coming from OpenAI).