The stock of Oracle (ORCL) is up 3% on speculation that the U.S. software company could be involved in a deal between the U.S. and China over social media app TikTok.
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U.S. President Donald Trump wrote on social media that an agreement has been reached with China over TikTok, a popular video-sharing app. U.S. Treasury Secretary Scott Bessent, who has been negotiating with Chinese officials over trade issues, provided more clarity, saying that there is “a framework for a TikTok deal.”
Bessent added when speaking to media that the deal related to TikTok is “between two private parties, but the commercial terms have been agreed upon.” That has led to speculation that Oracle could be involved in a deal with TikTok parent company, privately held ByteDance of China. Oracle has not commented publicly on the matter, but the speculation has its stock up at noon on Sept. 15.
National Security Concerns
There have long been national security concerns related to TikTok’s use in the U.S. Specifically, lawmakers have raised concerns that the Chinese government in Beijing could use the TikTok app to spy on American citizens and access sensitive information.
In April 2024, former U.S. President Joe Biden signed a law giving ByteDance nine months to divest from TikTok or face a ban in the U.S. Since then, President Trump has extended the TikTok deadline several times as the White House opened an official account on TikTok. President Trump has said several times that he’d like to see a U.S. company buy TikTok or at least oversee its operations in America.
Oracle has frequently been discussed as a possible partner in a TikTok sale, with President Trump saying earlier this year that he was open to Oracle CEO Larry Ellison buying the video-sharing app. ORCL stock has risen sharply in recent days following the company’s latest quarterly financial results and guidance.
Is ORCL Stock a Buy?
The stock of Oracle has a consensus Strong Buy rating among 32 Wall Street analysts. That rating is based on 24 Buy and eight Hold recommendations issued in the last three months. The average ORCL price target of $340.75 implies 12.92% upside from current levels.
