Why Oracle Stock Just Popped

• The TikTok woody is done and the US concern is present officially known arsenic "TikTok USDS Joint Venture LLC."

• Oracle volition ain a significant, but not controlling involvement successful the caller TikTok JV.

• 10 stocks we similar amended than Oracle ›

Oracle (NYSE: ORCL) banal jumped 3% done 10:40 a.m. ET Monday aft work of an interior memo to employees from TikTok CEO Shou Chew -- confirming the TikTok U.S. woody is done.

Oracle, alongside backstage equity steadfast Silver Lake and Abu Dhabi-based MGX, present collectively owns 45% of TikTok U.S.

Non-Chinese ownership totals 80%, with 20% of the caller associated task remaining nether power of Chinese genitor institution ByteDance.

As Business Insider reported today, the memo (circulated connected Thursday) confirms that "TikTok USDS Joint Venture LLC has been established successful compliance with the Executive Order signed by President Trump connected September 25, 2025."

The associated task is "majority American owned" and "will run nether defined safeguards that support nationalist information done broad information protections, algorithm security, contented moderation, and bundle assurances for US users." The Chinese broadside of the associated task appears to beryllium a ByteDance subsidiary called "TT Commerce & Global Services LLC."

The company's committee of directors has appointed Adam Presser to tally the JV. According to his LinkedIn profile, Mr. Presser has been with TikTok for astir 4 years and was formerly caput of Warner Bros. Entertainment's subsidiary, WarnerMedia China, Austria & New Zealand.

At this aboriginal date, it's unclear however bully this quality is for Oracle -- though the information that Oracle has been actively pursuing an ownership involvement successful TikTok U.S. for the past fewer years suggests that Oracle, astatine least, volition deliberation this is bully news.

At a valuation of 33 times trailing earnings, and a forecast maturation complaint of 23%, Oracle banal doesn't look excessively costly close now. Do beryllium aware, though, that Oracle carries $112 cardinal successful nett debt. On an endeavor value-to-earnings ratio basis, this raises the valuation significantly.

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