Oracle (ORCL 1.50%) 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.
