Oracle up over 5% pre-market, may play key role in Trump administration's TikTok deal with China

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Oracle up over 5% pre-market, may play key role in Trump administration's TikTok deal with China

Oracle (ORCL) stock jumped over 5% in pre-market trading on Monday, September 12, 2025, amidst speculation that the company may play a key role in the Trump administration's TikTok deal with China. The stock's surge follows President Trump's confirmation of a preliminary TikTok deal with China during trade talks in Madrid. The deal, which is not yet finalized, involves a framework agreed upon by the U.S. and China, with Treasury Secretary Scott Bessent confirming the agreement. Trump and Chinese President Xi Jinping are set to speak on Friday to finalize the arrangement. Oracle is currently the top contender to acquire TikTok, with the company already storing U.S. user data through Project Texas . Oracle's stock spiked as much as 5% in premarket trading after Trump hinted at the deal on Truth Social, calling the trade meeting "VERY WELL!" and stating that a deal was reached for a "certain" company that "young people in our Country very much wanted to save" . The stock eased slightly during the day but still ended up more than 3%. The potential TikTok acquisition comes at a critical time, as the app faces a U.S. ban unless it divests its ownership to a U.S.-or US-allied country by September 17. Trump has indicated he may extend the deadline . Oracle's existing relationship with TikTok and its infrastructure for handling U.S. user data make it a strong candidate to complete the acquisition quickly. While Oracle is the front-runner, other bidders, such as a group of investors led by Frank McCourt Jr., Microsoft (MSFT), YouTuber Mr. Beast, and Perplexity AI, have also expressed interest. However, Oracle's servers are already doing the work, which is a significant advantage in the current context . Oracle's stock performance is also buoyed by its projected cloud revenue growth. The company recently forecasted that its cloud revenue would soar to $144 billion by its 2030 fiscal year, driven by a $300 billion deal with OpenAI . Additionally, Oracle has been central to Trump's AI plans, with its chair, Larry Ellison, joining OpenAI CEO Sam Altman, SoftBank Group (SFTBY) CEO Masayoshi Son, and Trump in January at the Oval Office to announce a $500 billion initiative, called Stargate, to build AI data centers in the U.S. .