Oracle Corporation (NASDAQ:ORCL) shares are trading higher and trending on Monday. Here’s a look at what’s going on.
What To Know: Oracle announced Clay Magouyrk and Mike Silicia as co-CEOs on Monday. Magouyrk previously served as president of Oracle Cloud Infrastructure (OCI) and Sicilia was formerly president of Oracle Industries.
Safra Catz, who has served as Oracle’s CEO since 2014, has been appointed to serve as executive vice chair of Oracle’s board. Oracle also announced that Mark Hura will be promoted to president of global field operations and Doug Kehring will be promoted to principal financial officer.
In connection with the CEO transition, Oracle reaffirmed its forward guidance provided on its earnings call earlier this month. The company isn’t due to report earnings again until December, according to Benzinga Pro.
Oracle shares may also be getting a boost on Monday because of the company’s involvement in a Trump administration plan to have U.S.-based companies manage TikTok, a video-based social media app.
TikTok is expected to create a duplicate of its algorithm and share it with Oracle, who will be one of three U.S. firms with large stakes in the social media company. TikTok was previously set to be banned in the U.S. earlier this year if it didn’t sell itself to an American company.
President Donald Trump on Sunday praised the tech leaders involved in the TikTok deal, including Oracle’s Larry Ellison.
Oracle is also reportedly in talks with Meta regarding an AI cloud computing deal worth up to $20 billion, according to a Reuters report. More data centers are being built out to accommodate the rise of AI and the infrastructure needed to support it. Oracle said earlier this month on an earnings call that its first-quarter cloud infrastructure revenue was up 55%, netting $3.3 billion for the company.
Oracle shares have risen approximately 35% over the past month, outpacing several other tech giants. Analysts remain optimistic on Oracle with several firms raising price targets in recent weeks, including a new Street-high target of $410 from Citigroup on Sept. 10.
ORCL Price Action: Oracle stock was up 4.44% at $322.37 at the time of publication on Monday, according to Benzinga Pro.
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