Oracle shares jumped after the US and China agreed on a preliminary TikTok deal. Here’s what it means for TikTok’s future and Oracle investors.
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Oracle Stock Jumps as US, China Reach Preliminary TikTok Deal
Oracle (ORCL) stock surged as much as 5% on Tuesday after the United States and China reached a preliminary TikTok deal during trade talks in Madrid. The agreement, while not finalized, signals a potential breakthrough in the ongoing standoff over TikTok’s US operations and data security.
US-China Agreement Sets the Stage
Treasury Secretary Scott Bessent confirmed at a Monday press conference that both countries had agreed on a framework. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a call on Friday to finalize the deal.
TikTok, facing a looming US ban deadline on September 17, is required to divest its ownership to a US or allied company. The new framework may buy the app more time while ensuring its continued operations.
Oracle’s Role in the TikTok Deal
While no official US buyer has been announced, Oracle has emerged as a top contender. Reports from CBS News indicate that Oracle will join a consortium of companies involved in the agreement.
- Project Texas: Oracle already hosts TikTok’s American user data on its servers as part of TikTok’s security initiative.
- Cloud Expansion: CNBC reported that the deal framework would allow Oracle to maintain and possibly expand its cloud partnership with TikTok.
This strengthens Oracle’s position not only as a key technology partner but also as a potential acquirer, boosting investor confidence.
Market Reaction: Oracle Stock Soars
Shares of Oracle traded at $303.94 (+0.60%) in midday action, after spiking 5% in premarket trading when Trump first hinted at the TikTok breakthrough.
Trump added fuel to investor optimism with a Truth Social post, writing:
“The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! A deal is also reach on a ‘certain’ company that young people in our Country very much wanted to save.”
Oracle’s stock is already up 81% year-to-date, with Wall Street cheering its aggressive push into cloud services, AI infrastructure, and partnerships with companies like OpenAI.
TikTok’s Deadline Pressure
TikTok’s future remains uncertain. The app faces a ban unless it finds a US buyer or partner acceptable to the government. While Oracle has a strong case, other players like Microsoft (MSFT), billionaire Frank McCourt Jr., Mr. Beast, and Perplexity AI have also expressed interest.
If Oracle secures the deal, it would gain:
- A larger foothold in the fast-growing social media market
- Increased leverage in the AI and cloud infrastructure space
- Strengthened ties with the US government on national security
Oracle’s AI and Cloud Growth
Beyond TikTok, Oracle is positioning itself as a global leader in AI infrastructure:
- Its Stargate initiative, a $500 billion AI data center project announced alongside Trump, OpenAI CEO Sam Altman, and SoftBank’s Masayoshi Son, highlights its ambition.
- The company has projected cloud revenue of $144 billion by 2030, largely driven by a $300 billion deal with OpenAI.
With this momentum, Oracle’s long-term growth prospects appear strong, especially if it secures TikTok.
FAQs on Oracle and TikTok Deal
1. Why did Oracle stock rise this week?
Oracle shares jumped after news that the US and China reached a preliminary deal to keep TikTok operating, with Oracle likely playing a central role.
2. What is Oracle’s connection to TikTok?
Oracle already stores TikTok’s American user data under Project Texas, ensuring compliance with US security standards.
3. When is TikTok’s US ban deadline?
TikTok must divest to a US or allied buyer by September 17, 2025, unless the deadline is extended.
4. Who else is interested in buying TikTok?
Microsoft, Frank McCourt Jr., YouTuber Mr. Beast, and Perplexity AI have all expressed interest.
5. How much has Oracle stock gained in 2025?
Oracle shares are up 81% year-to-date, fueled by strong cloud revenue growth and AI investments.
Conclusion
The US-China preliminary TikTok deal has sparked optimism for both TikTok’s future and Oracle’s stock. While details are still being finalized, Oracle’s unique position as TikTok’s cloud partner makes it a frontrunner in any acquisition or management deal.
👉 Investors should watch closely for Friday’s Trump-Xi talks, which could determine the fate of TikTok in America — and shape Oracle’s growth story for years to come.