Oracle shares surge 3.34% on strategic TikTok partnership deal

Oracle shares surged 3.3391% in pre-market trading on Dec. 23, 2025, following reports of a strategic partnership to secure a controlling stake in TikTok’s U.S. operations through a joint venture with Silver Lake and Abu Dhabi-based MGX. The deal, aimed at addressing national security concerns, positions Oracle to manage U.S. data security and algorithm oversight for the platform, solidifying its role as a key cloud and data services provider.

Analysts highlight the partnership as a potential catalyst for Oracle’s cloud business, with TikTok’s high-margin operations expected to boost recurring revenue for Oracle Cloud Infrastructure (OCI). Larry Ellison’s personal $40.4 billion equity guarantee for a separate deal involving Warner Bros Discovery further underscores confidence in the company’s strategic initiatives.

Despite recent volatility, including a 19.5% year-to-date gain, Oracle’s stock remains 39.5% below its 52-week high, reflecting ongoing debates over its long-term value proposition.

With a “Moderate Buy” analyst rating and a mean target price of $306.19, the stock faces mixed sentiment. While cloud revenue growth and a $523 billion remaining performance obligation backlog signal strong demand, concerns persist over Oracle’s $100+ billion debt load and ambitious capital spending plans. The TikTok deal, if finalized, could serve as a pivotal differentiator in Oracle’s AI and enterprise software ambitions, but execution risks and regulatory hurdles remain key watchpoints for investors.

Market observers are closely monitoring regulatory developments, particularly given the geopolitical sensitivities of the TikTok transaction. A successful conclusion would not only enhance Oracle’s market share in cloud services but could also lead to broader collaborations with U.S. government agencies and tech firms seeking secure data management solutions. Meanwhile, institutional investor activity has shown a mixed trend, with some firms increasing exposure while others remain cautious, citing valuation concerns and macroeconomic uncertainty.