Oracle ORCL surges 3.34% on TikTok joint venture deal

Oracle (ORCL) surged 3.3391% in pre-market trading on December 23, 2025, as renewed investor confidence emerged amid strategic developments. The stock’s upward momentum followed reports of a landmark agreement to secure a controlling stake in TikTok’s U.S. operations through a joint venture with Silver Lake and Abu Dhabi-based MGX. This partnership aims to address national security concerns while positioning Oracle as a key provider of cloud infrastructure, data security, and algorithm oversight for the platform. The deal is seen as a pivotal win for Oracle’s cloud business, offering a high-margin, long-term client and reinforcing its credibility in enterprise-scale data management.

Adding to the optimism, Oracle co-founder Larry Ellison personally guaranteed $40.4 billion in equity financing for Paramount Skydance’s bid for Warner Bros Discovery, signaling confidence in the company’s financial flexibility. Analysts note that while Oracle’s shares remain below their 52-week high, the stock has gained 19.5% year-to-date, reflecting resilience amid earlier volatility. The recent rebound follows weeks of selling pressure linked to concerns over its AI infrastructure investments and debt levels. However, Oracle’s cloud revenue continues to grow robustly, with its cloud business expanding 34% year-over-year in the latest quarter, underscoring its competitive positioning in the AI-driven enterprise software sector.

Analysts have assigned Oracle a “Moderate Buy” rating, with a mean target price of $306.19, indicating potential upside of nearly 60% from current levels. The TikTok deal and Oracle’s expanding cloud capabilities are viewed as catalysts for long-term growth, particularly as demand for secure, enterprise-grade AI infrastructure accelerates. Investors remain cautious about regulatory hurdles for the TikTok agreement but see the partnership as a strategic milestone that could enhance Oracle’s reputation in high-stakes data security and AI deployment.

With growing interest in Oracle's stock and recent strategic investments, many investors are looking to understand its long-term trajectory. The TikTok partnership and Oracle’s cloud revenue growth signal a strong foundation for continued expansion. However, market volatility and macroeconomic factors could influence its short-term performance. The stock’s recent 3.3391% pre-market gain reflects immediate investor enthusiasm, yet the broader market environment remains a key factor in determining future outcomes.