Bernstein Notes Oracle’s (ORCL) Growing Cloud Position, Calls TikTok Deal a Game-Changer

Core Insights - Oracle Corporation is recognized as a significant player in the AI stock market, particularly following positive analyst commentary regarding its TikTok deal [1][2] - The company has announced $317 billion in new Remaining Performance Obligations (RPO), positioning it to potentially become the third largest hyperscaler in the cloud services market [1] - The TikTok arrangement is expected to enhance Oracle's relevance with consumer internet companies and provide benefits beyond just revenue and cash flow [1][2] Company Positioning - Analyst Mark Shmulik emphasized Oracle's expanding role in cloud services, which is critical for its growth strategy [1] - The anonymized access to TikTok data is anticipated to showcase Oracle's AI inferencing capabilities, further solidifying its market position [2] - There are concerns regarding the funding of Oracle's extensive Oracle Cloud Infrastructure (OCI) build-out, but the deal is viewed as a significant positive for the company's narrative [2]