Oracle stock jumps as US, China agree to preliminary TikTok deal

Core Viewpoint - Oracle's stock experienced a rise of up to 5% following a preliminary deal between the US and China regarding TikTok, with expectations of further discussions to finalize the agreement [1][4]. Group 1: Oracle's Position in TikTok Deal - Oracle has emerged as a leading contender to acquire TikTok, participating in a consortium as part of the preliminary US-China deal to allow TikTok to continue operations [2][7]. - The agreement between the US and China is expected to enable Oracle to maintain its existing cloud deal with TikTok, which involves storing American user data through Project Texas [3][5]. Group 2: Market Reaction and Financial Performance - Oracle's stock has surged 81% year-to-date, with a notable increase following the company's projection of cloud revenue reaching $144 billion by the 2030 fiscal year, largely attributed to a $300 billion deal with OpenAI [8]. - The stock price spiked as much as 5% in premarket trading when former President Trump hinted at a potential TikTok deal [3]. Group 3: Broader Context and Future Prospects - TikTok faces a potential ban in the US unless it divests ownership to a US or allied country by September 17, although there are indications that the deadline may be extended [4]. - Oracle has been actively involved with the Trump administration in initiatives to develop AI in the US, including a $500 billion project to build AI data centers, although this project has encountered delays [6].