Why Oracle Stock Just Popped
Key Points
The TikTok deal is done and the US business is now officially known as "TikTok USDS Joint Venture LLC."
Oracle will own a significant, but not controlling stake in the new TikTok JV.
- 10 stocks we like better than Oracle ›
Oracle (NYSE: ORCL) stock jumped 3% through 10:40 a.m. ET Monday after publication of an internal memo to employees from TikTok CEO Shou Chew -- confirming the TikTok U.S. deal is done.
Oracle, alongside private equity firm Silver Lake and Abu Dhabi-based MGX, now collectively owns 45% of TikTok U.S.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Non-Chinese ownership totals 80%, with 20% of the new joint venture remaining under control of Chinese parent company ByteDance.
Image source: Getty Images.
What does the TikTok memo say?
As Business Insider reported today, the memo (circulated on Thursday) confirms that "TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025."
The joint venture is "majority American owned" and "will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users." The Chinese side of the joint venture appears to be a ByteDance subsidiary called "TT Commerce & Global Services LLC."
The company's board of directors has appointed Adam Presser to run the JV. According to his LinkedIn profile, Mr. Presser has been with TikTok for nearly 4 years and was formerly head of Warner Bros. Entertainment's subsidiary, WarnerMedia China, Austria & New Zealand.
What does this mean for Oracle stock?
At this early date, it's unclear how good this news is for Oracle -- although the fact that Oracle has been actively pursuing an ownership stake in TikTok U.S. for the last few years suggests that Oracle, at least, will think this is good news.
At a valuation of 33 times trailing earnings, and a forecast growth rate of 23%, Oracle stock doesn't look too expensive right now. Do be aware, though, that Oracle carries $112 billion in net debt. On an enterprise value-to-earnings ratio basis, this raises the valuation significantly.
Should you buy stock in Oracle right now?
Before you buy stock in Oracle, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oracle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 26, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
Recommended Articles
