Oracle Stock Finds Momentum in TikTok Partnership

A significant cloud services agreement has provided Oracle with a substantial vote of confidence. The company has moved to the forefront of operating TikTok's U.S. business, shifting investor focus from concerns over AI infrastructure funding to tangible, revenue-generating contracts. This development represents more than a public relations victory; it offers predictable capacity utilization, new income streams, and validation for its artificial intelligence roadmap.

On Friday, confirmation arrived that Oracle has entered into binding agreements to form a consortium with Silver Lake and MGX for the operation of TikTok's U.S. operations. Within this structure, Oracle will act as the "secure cloud host" for approximately 170 million American users. Its responsibilities will encompass data security, algorithm protection, and software guarantees for the U.S. entity.

This announcement concludes months of speculation regarding TikTok's future in the United States. For Oracle, the move carries strategic weight by delivering immediate, high-volume usage for its cloud infrastructure. This comes at a crucial time, as the market has grown increasingly skeptical about the massive capital requirements for its AI investments.

The news triggered palpable relief on the trading floor. Oracle's shares advanced by 7.10% on Friday to close at €164.40. While this recovery recouped some of the losses sustained in recent weeks, the stock remains significantly down—approximately 41%—from its 52-week high of €280.70.

Shifting the Narrative from Funding to Revenue

The share price jump appears particularly noteworthy given the previously negative sentiment. Earlier in the week, the equity came under considerable pressure following reports that Blue Owl Capital had paused negotiations concerning a planned $10 billion funding round. Those funds were earmarked for a new, roughly 1-gigawatt AI data center project in Michigan, a key initiative for Oracle's expansion in artificial intelligence.

That news had amplified worries that Oracle, despite securing enormous AI contracts, might struggle to build the necessary physical infrastructure. The now-confirmed TikTok partnership alters this perception somewhat, pivoting the discussion from "funding shortfalls" to "revenue realization." Unlike long-term capacity projects still under development, this deal involves immediate, high-volume cloud demand.

Additional trading dynamics were introduced by Friday's triple witching event—the simultaneous expiration of stock options, index futures, and index options. Such dates traditionally correlate with elevated trading volumes and can amplify price movements.

Should investors sell immediately? Or is it worth buying Oracle?

Strategic Execution Challenges Persist

Oracle is navigating a demanding transitional phase. Leadership now rests partly with Clayton M. Magouyrk, the former head of Oracle Cloud Infrastructure (OCI), following the departure of long-time CEO Safra Catz. The market expects him to operationally deliver on ambitious AI plans for a stock that has retreated about 40% from its peak.

Recent quarterly results for the second fiscal quarter of 2026 highlight this tension. Revenue grew 14% to $16.1 billion. More impressive, however, was the backlog: Remaining Performance Obligations (RPO) surged to $523 billion, a staggering 438% year-over-year increase. A substantial portion of this volume stems from a record cloud capacity contract with OpenAI, valued at approximately $300 billion.

This is precisely the crux of the challenge: a gap exists between this colossal order book and current cash flow. The halted Blue Owl financing for the Michigan data center illustrated the difficulty of funding physical infrastructure for contracts of this magnitude. In this context, the TikTok deal is critical because it promises immediate, high-volume utilization of existing cloud capacity without the same massive upfront investment required for the OpenAI expansion.

Technically, the stock remains under pressure. At €164.40, the share price trades decisively below both the 50-day moving average of €193.37 and the 200-day line of €187.68. A 30-day volatility reading of 56.88% (annualized) continues to signal a nervous environment, while an RSI of 69.3 suggests the short-term recovery may already be overextended.

Key Developments on the Horizon

Several focal points will emerge in the coming weeks:

• Regulatory Approvals: The binding agreements for the TikTok consortium still require final regulatory confirmation, a step currently anticipated for early 2026.
• AI Infrastructure Funding: Following the breakdown of talks with Blue Owl, the question remains as to how Oracle intends to secure financing for its planned Michigan AI data center.
• Dividend Payment: Shareholders of record on January 9, 2026, will receive a quarterly cash dividend of $0.50 per share on January 23, 2026.

For Oracle's equity, the TikTok agreement has restored near-term confidence and sharpened the focus on revenue-generating cloud projects. The decisive factor for its future trajectory, however, will be whether the company can reliably structure financing for its major projects and efficiently convert its enormous pipeline of orders into usable capacity and cash flow.