Oracle Stock Is Surging Monday: What's Going On?

Oracle Corp (NYSE:ORCL) shares are trading higher Monday afternoon as investors react to recent reports that the software giant will become one of TikTok's new U.S. owners, offering a rebound from weeks of selling pressure. Here’s what investors need to know.

• Oracle stock is among today’s top performers. Why is ORCL stock up today?

What To Know: Reports last week indicated a consortium led by Oracle and including private equity firm Silver Lake and UAE-backed investor MGX have reportedly agreed to acquire a minority stake in TikTok.

Together with Oracle, the group is expected to hold about 45% of the new entity, while existing ByteDance investors will own roughly one-third and ByteDance will retain a 20% interest. Americans are expected to occupy most of the seven board seats in the restructured company.

Monday’s rally also comes after Oracle shares slid in recent sessions on concerns about its aggressive AI build-out. The company recently posted mixed second-quarter results, with revenue of about $16.1 billion narrowly missing Wall Street estimates even as adjusted earnings surged and cloud revenue jumped double digits.

Sentiment weakened further when key financing partner Blue Owl Capital stepped back from a planned $10 billion Michigan data center serving OpenAI, raising questions about the durability and cost of Oracle's AI infrastructure strategy and contributing to technical weakness in the stock.

Despite Monday's rebound, Oracle remains below recent highs, and future performance will hinge on regulatory outcomes for the TikTok deal and the company's ability to fund its cloud and AI ambitions without overextending its balance sheet.

Benzinga Edge Rankings: According to Benzinga Edge, Oracle currently earns its highest factor score in Growth at 64.41, even as its Momentum (26.97) and Value (11.67) rankings remain relatively weak.

Oracle shares were up 3.10% at $179.89 at the time of publication on Monday, according to Benzinga Pro.

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