Oracle (NYSE:ORCL) saw its stock climb more than 4% on Monday after U.S. President Donald Trump indicated progress toward a deal to secure TikTok’s U.S. operations.
On his Truth Social account, Trump hinted that discussions with Beijing had produced results. “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy!” he wrote, adding that he plans to speak with Chinese President Xi Jinping on Friday.
The remarks came after U.S. Treasury Secretary Scott Bessent commented in Madrid that negotiators had reached an agreement in principle during ongoing trade talks. “Without [Trump’s] leadership and the leverage he provides, we would not have been able to include the deal today,” Bessent said, emphasizing that the framework seeks to balance fairness for China with protections for U.S. national security.
TikTok, the Chinese-owned video platform, has been under scrutiny in Washington for years. A bipartisan law enacted under President Joe Biden required the company to divest its U.S. operations or face a nationwide ban. Although the app briefly went offline in January, Trump has repeatedly delayed enforcement using executive authority, most recently extending the deadline to September 17.
Oracle has served as TikTok’s U.S. cloud provider since 2022, positioning it at the center of the potential agreement.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.