Oracle stock (ORCL) extended its rally in pre-market trading on Tuesday, rising about 5% after a 3% gain on Monday. The continued momentum comes on growing buzz that the U.S. software giant could play a key role in the developing deal between Washington and Beijing over TikTok.
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Oracle’s Role in the TikTok Deal
Reportedly, Oracle is expected to provide cloud services for a new U.S.-based TikTok company, which could be valued at up to $50 billion. The arrangement would give Oracle a front-row seat in one of the most closely watched tech restructurings in years.
Oracle co-founder and Chairman Larry Ellison has been a vocal supporter of TikTok during past negotiations. However, it is unclear whether he can take a direct equity stake while Oracle serves as TikTok’s hosting provider.
Reports suggest his son, David Ellison, may step in with an investment. David, who runs Skydance Media, recently bought Paramount for $8 billion and is now pursuing a $50 billion deal for Warner Bros. Discovery (WBD).
His rising role in media and tech makes him a likely investor in TikTok, keeping the Ellison family linked to the app while avoiding conflicts with Oracle’s role as host.
Is Oracle a Good Stock to Buy?
Currently, Wall Street has a Strong Buy consensus rating on Oracle stock based on 24 Buys and eight Holds. The average ORCL stock price target of $340.75 indicates about 12.78% upside potential from current levels.
