Why Oracle Stock Just Popped

Core Insights - Oracle's stock increased by 3% following the confirmation of the TikTok U.S. deal completion by TikTok CEO Shou Chew [1] - Oracle, along with Silver Lake and MGX, now holds a 45% stake in TikTok U.S., contributing to a total of 80% non-Chinese ownership in the joint venture [1] - The new entity is named "TikTok USDS Joint Venture LLC" and is established under U.S. national security safeguards [3] Company and Industry Summary - The TikTok U.S. deal is officially completed, with Oracle owning a significant stake but not a controlling interest in the joint venture [7] - The joint venture will operate with defined safeguards for data protection and content moderation, addressing national security concerns [3] - Oracle's current valuation stands at 33 times trailing earnings, with a forecast growth rate of 23%, although it carries a substantial net debt of $112 billion [5] - Analysts have noted that Oracle was not included in a list of the top 10 stocks recommended for investment, suggesting a cautious outlook on its stock performance [6]