Oracle shares surge 3.34% on joint venture securing TikTok U.S. operations cloud stake

Oracle shares surged 3.3391% in pre-market trading on December 23, 2025, building on earlier gains driven by strategic developments in its cloud business. The stock’s momentum followed reports that Oracle secured a controlling stake in TikTok’s U.S. operations through a joint venture with Silver Lake and MGX. The deal, aimed at addressing U.S. national security concerns, positions Oracle to manage TikTok’s data security, algorithm oversight, and user data hosting, reinforcing its role as a key cloud infrastructure provider.

Analysts highlighted the partnership as a potential catalyst for Oracle’s long-term growth, particularly in securing high-margin cloud contracts and enhancing its reputation for large-scale data management.

The deal also aligns with Oracle’s broader push into AI infrastructure, with the TikTok collaboration serving as a reference point for enterprise clients seeking secure, scalable solutions. However, risks remain, including regulatory hurdles from Chinese authorities and Oracle’s substantial debt burden, which has raised concerns about its financial flexibility.

Despite recent volatility, Oracle’s shares have risen 19.5% year-to-date, trading near $198.48. Analysts maintain a “Moderate Buy” rating, with a mean price target of $306.19, reflecting confidence in its cloud expansion and enterprise software dominance. The stock’s performance underscores investor focus on Oracle’s ability to capitalize on AI-driven demand while balancing its capital-intensive growth strategy.

Looking ahead, Oracle is expected to leverage the TikTok partnership to expand its cloud footprint and secure additional enterprise contracts. The company’s recent investments in AI and data analytics are also expected to drive incremental revenue. While the partnership introduces regulatory and geopolitical risks, it also presents a unique opportunity for Oracle to differentiate itself in the competitive cloud infrastructure market.