Oracle (ORCL 3.33%) shares popped higher on Monday following something of a post-earnings retreat late last week. The tech stock added over 3% to its value that session, thanks in no small part to an apparent agreement between the U.S. and Chinese governments on the fate of a top social media company. By comparison, the S&P 500 index didn’t have such a prosperous day, closing only 0.5% higher.
Deal over TikTok announced
That morning, U.S. Treasury Secretary Scott Bessent said that the two nations had agreed on a framework for a deal on TikTok. He added that a meeting to finalize its terms is to be held this coming Friday between President Trump and his Chinese counterpart, Xi Jinping.
Image source: Getty Images.
Trump himself alluded to this without naming the subject of the arrangement, but it was widely interpreted to be TikTok. In a post on his Truth Social site, he wrote that “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!”
The President provided no further details of the mentioned arrangement.
Already a business partner of TikTok’s developer
A law passed in 2024 banned TikTok from the U.S. market — due to its perceived harmful influence on young people — unless its Chinese owner ByteDance divests its American operations. However, the government has effectively granted ByteDance a reprieve on three separate occasions.
Oracle provides cloud computing services for ByteDance, and its name has been floated as a potential buyer of the Asian company’s operations in this country.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Oracle. The Motley Fool has a disclosure policy.
