Why Oracle Stock Was on Fire Today

Speculation about a niche technology company possibly changing hands pushed up Oracle's (NYSE: ORCL) stock price on Thursday. The database king was mentioned by more than one speculating party as a potential buyer of the company, which has posted some impressive top-line growth numbers in its time.

Oracle shares ended the day's trading session up by over 3%, comparing quite favorably to the S&P 500 index's 0.6% bump higher.

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Order up?

After market hours Wednesday, Bloomberg published an article stating that restaurant software specialist Olo (NYSE: OLO) is considering a potential sale.

Citing unidentified "people familiar with the matter," the financial news agency said that Olo management is working with a financial advisor to help it ascertain interest from prospective buyers. They said Oracle could be one of these, as could Olo's rival restaurant tech solutions provider, Toast.

The article's sources stressed that the situation is at an early stage and might not result in Olo chasing a deal. The company has not yet officially commented on the article, nor has Oracle or Toast.

A billion-dollar-plus price tag

Oracle was surely mentioned as a potential suitor because the tech sector mainstay has been here before -- Bloomberg pointed out that in 2014, it purchased Micros Systems, a developer of solutions for the restaurant and retail industries, for $5.3 billion.

Additionally, Oracle has deep pockets, and while Olo doesn't have a monster market cap ($1.2 billion), it might be too costly for a would-be acquirer that lacks sufficient financial resources.

Of course, none of this has been officially acknowledged by the companies mentioned in the article, so investors shouldn't trade any based on speculation. This could develop into a very interesting story, however, so it's worth tracking for any Oracle or Toast investor (and Olo shareholder, of course).

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Olo, Oracle, and Toast. The Motley Fool has a disclosure policy.