TikTok Deal Boosts Oracle; Shares Rise 3% on Renewed Hopes of Strategic Role

TradingKey - Following reports that China and the U.S. have reached a basic framework agreement on TikTok during economic talks in Spain, Oracle’s stock reversed a two-day 11% decline, surging over 3% as the company is seen as a key player in enabling TikTok to continue operating in the U.S.

According to Xinhua News Agency on September 15, both sides agreed on a basic consensus to resolve the TikTok issue by:

• Entrusting the operation of TikTok’s U.S. user data and content security services

• Authorizing usage rights for algorithms and other intellectual property

The arrangement was made with full respect for enterprise willingness and market principles.

U.S. President Donald Trump posted on social media:

“A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy!”

TikTok has around 170 million users in the U.S., but both the Biden administration and the Trump 2.0 government have demanded that its parent company, ByteDance, sell the U.S. operations to a non-Chinese entity over national security concerns, or face a ban. Due to unresolved issues, the “sell-or-ban” deadline has been postponed multiple times.

Sources told CBS News that Oracle is one of the consortium members involved. If the framework agreement is finalized, these companies could ensure TikTok continues operations in the U.S.

The exact structure of the final deal remains unclear, but multiple firms are expected to participate. Key details — such as ByteDance’s final ownership stake and who will control TikTok’s recommendation algorithm — are still unknown and may only be clarified after the meeting between Chinese President Xi Jinping and President Trump on Friday.

In March, outlets including The Information and Politico reported that the White House was considering letting Oracle take over TikTok’s U.S. operations, while allowing ByteDance to retain partial control.

For months, Oracle has been viewed as a top contender for the deal, already managing TikTok’s U.S. user data through its Texas-based data centers. If the transaction proceeds, TikTok’s massive user base and cloud storage demands could further boost Oracle Cloud, which is already gaining strong momentum from its multi-year, $300 billion compute agreement with OpenAI.

Constellation Research previously outlined three strategic reasons why Oracle would benefit from acquiring TikTok:

• Battle for key workloads in the cloud wars

• Once in a lifetime opportunity to create an ad network

• Tech diplomacy in the US vs China trade wars

Analysts note that TikTok is the fastest-growing social network and ad platform in the U.S., offering Oracle a natural traffic advantage and credibility in social media — a rare opportunity for a traditional enterprise software firm.

However, Bank of America analysts cautioned that operational synergies between Oracle and TikTok’s digital media business may be limited. Oracle’s role may be more about ensuring regulatory compliance rather than deep integration or large-scale content operations.

So far in 2025, Oracle’s stock has surged 81.31%, far outpacing Nvidia’s 32.36% gain. According to TradingKey’s stock scoring tool, Oracle scores 7.49 out of 10, ranking 11th among 470 software and IT service stocks. Among the 42 Wall Street analysts covering Oracle, not a single one rates it as “Sell,” and the average target price implies 12% upside from current levels.

Oracle Stock Analysis, Source: TradingKey