Street Calls of the Week
Investing.com-- Oracle Corporation (NYSE:ORCL) shares jumped 5% in premarket trading Tuesday after CBS News reported. that the software giant is among a consortium of firms that could enable TikTok to continue operating in the U.S. if a framework deal between Washington and Beijing is reached.
The precise nature of the deal was unclear, but it will involve multiple companies, CBS reported on Monday evening, citing sources with knowledge of the negotiations. TikTok parent Bytedance’s involvement in the deal was also unclear.
The report comes after U.S. officials said they had agreed to the commercial terms of the deal with Beijing, following high-level talks in Madrid between the two countries.
Trump on Monday hinted that a deal was on the way, posting on social media that “a deal was also reached on a ‘certain’ company that young people in our country very much want to save.”
Speculation that Oracle will play a role in the TikTok deal spurred sharp gains in the company’s shares on Monday. This was after the cloud computing firm presented a bumper outlook for revenue, driving its shares to record highs last week.
TikTok was banned by Congress, and was set to scuttle its U.S. operations in January. But Trump had signed a series of executive orders postponing the ban, and had recently said that he would do so again if a deal with China was not reached.
Congress had banned TikTok over concerns about national security, specifically in that the app was collecting the personal information of millions of Americans.
(Ambar Warrick contributed to this report.)