Oracle Stock Finds Momentum in TikTok Partnership and Cloud Growth

Oracle Corporation has rapidly positioned itself at the heart of two major narratives: the future of TikTok in the United States and the aggressive expansion of its own cloud and AI infrastructure. After a brief period of uncertainty triggered by a collapsed financing deal, investor focus has shifted back to the company's long-term growth prospects. The market now appears to be assigning greater weight to the strategic importance of the new TikTok joint venture than to recent funding concerns.

Beneath the headlines, Oracle's latest quarterly results provide a foundation for investor optimism, despite a revenue miss in Q2 of fiscal 2026. Key metrics highlight significant momentum, particularly in cloud services:

• Remaining Performance Obligations (RPO): The backlog of contracted future revenue surged to a record $523 billion, representing a staggering 438% year-over-year increase. This points to an exceptionally strong pipeline, especially for AI-related contracts.
• Total Cloud Revenue: Grew 34% to $8.0 billion.
• Cloud Infrastructure (IaaS): Revenue jumped 68% to $4.1 billion, a clear signal of accelerating adoption of Oracle's infrastructure offerings.
• Adjusted Earnings Per Share (Non-GAAP): Came in at $2.26, substantially above analyst estimates of $1.64.

These figures support the view that Oracle, despite its heavy investments in AI data centers, possesses the financial capacity to execute large-scale projects and generate recurring revenue for years to come.

The TikTok Joint Venture: A Strategic Catalyst

The immediate catalyst for the stock's recent recovery was the confirmation that Oracle will secure a 15% stake in the newly formed "TikTok USDS Joint Venture LLC." This entity consolidates U.S. investor control over TikTok's domestic operations, addressing a politically and economically sensitive issue.

The partnership serves a dual purpose: it alleviates U.S. national security concerns surrounding the social media platform and embeds Oracle deeply within the video giant's infrastructure.

Critical details of the arrangement include:

• Ownership Structure: Oracle, Silver Lake, and MGX will each hold 15%. ByteDance retains 19.9%, with existing investors controlling the remaining 30.1%.
• Oracle's Role: The company will act as the "Trusted Security Partner." Its responsibilities will include hosting U.S. user data, securing algorithms, and participating in content moderation governance.
• Market Impact: The sharp share price advance on Friday following the deal's announcement effectively erased the week's earlier losses.
• Strategic Significance: Investors perceive the mandate not merely as a source of additional sales, but as a powerful validation that Oracle Cloud Infrastructure (OCI) is suited for extremely large, security-critical workloads.

The stock closed yesterday at €168.76. Even after this rebound, it remains notably below its 52-week high and significantly under its 50- and 200-day moving averages—a testament to the pronounced volatility experienced this year.

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

Contrasting Sentiment: The Blue Owl Financing Setback

The current optimism stands in stark contrast to the market sentiment just days prior. Between December 17th and 18th, the share price faced considerable pressure following reports that Blue Owl Capital had withdrawn from a planned $10 billion financing deal.

This funding was intended for a major AI data center project in Michigan. The abrupt end to negotiations reignited Wall Street doubts about the capital intensity of AI infrastructure expansion and the potential for a significant increase in Oracle's debt load. For a short period, risk and capital requirements dominated the conversation.

However, management's swift confirmation of the TikTok joint venture successfully redirected the narrative back toward growth and contract volume. While the failed Blue Owl financing remains a risk factor for future large projects, it is currently overshadowed by the high-profile TikTok mandate.

Ellison's Personal Financial Moves Draw Attention

Separately, co-founder Larry Ellison has drawn additional attention to the Oracle ecosystem through a significant personal financial commitment. According to documents filed Monday, he is personally providing an equity backstop guarantee of $40.4 billion to support the Paramount-Skydance offer for Warner Bros. Discovery.

Formally, this move has no direct impact on Oracle's balance sheet. Nevertheless, it demonstrates the substantial financial reserves and leverage available to the company's innermost leadership circle. This has amplified media coverage around the stock and likely contributed to elevated trading volumes.

Outlook and Assessment

The prevailing market view now suggests that the combination of the TikTok partnership and a record contract backlog can support the share price over the medium term. The recent Blue Owl financing setback is being viewed more as a temporary funding gap rather than a fundamental brake on growth momentum.

The critical factor in the coming months will be Oracle's execution. The market will watch closely to see if the company can deliver its capital-intensive AI and data center projects on schedule and successfully convert its massive RPO backlog into recognized revenue and cash flow. Success on this front, with the TikTok mandate as a cornerstone, would likely see the cloud division play a central role in the stock's future trajectory.