Oracle's Tik Tok Deal as a Catalyst for a Tech Super Cycle
"And specifically looking at that, we have Oracle with their Tik Tok victory and the earnings super cycle that is ready to begin in February. The centerpiece of this bullish thesis is the massive catalyst coming later this month for Oracle. After years of legal limbo, confirmed reports state that Oracle consortium is set to finalize its takeover of Tik Tok US's operations on January 22nd, 2026. This deal is a gamecher not just for Oracle's cloud infrastructure revenue but for the broader tech sentiment proving that US big tech can secure massive geopolitical wins. This sets the stage for tech super cycle heading into February's earnings and of course oracles in March."
The insight focuses on Oracle's upcoming Tik Tok deal, highlighting how its finalization on January 22nd, 2026, could trigger a bullish tech earnings season in February. The speaker emphasizes that the deal will not only boost Oracle's cloud revenue but also positively impact broader tech sentiment, setting up a potential super cycle in tech stocks.
Oracle Shows Best 2025 Performance
"The best recommendation I made this year was Oracle, which returned over 53%. Close behind that was Alphabet, which returned 53%. AMD did well at 46%, Eli Liy at over 40%. Nvidia at close to 39%, Uber was actually my top rated stock all year at over 35%. Amazon was a disappointment at 5%. Pinterest was the most disappointing and the only negative return out of all of my picks with negative 11% return. DraftKings also did well at 29%."
Oracle is highlighted as the standout pick for 2025, delivering a 53% return and outperforming several other top stocks in a rigorously analyzed, fundamentally driven portfolio. The commentary reviews detailed performance metrics, implicitly reinforcing a strong, positive outlook on Oracle.
Oracle: Table Pounding Buy for 2026
"Oracle is the sovereign cloud super play for 2026. Oracle enters 2026 not just as a software legacy, but as an infrastructure giant capable of challenging Nvidia's dominance in AI and training clusters, making it a table pounding buy for January 2026. The specific catalyst for this time frame is the scheduled closing of the US Tik Tok deal on January 22nd, 2026, where Oracle alongside Silver Lake and MGX will secure a 15% equity stake in the new US entity. That capital is building the Stargate AI supercluster, and despite a short-term pullback in December due to a $50 billion capex plan, Smart Money views this dip as a gift."
The speaker explicitly recommends Oracle as a high-conviction buy for January 2026, emphasizing its transformation into an AI and cloud infrastructure leader. A major catalyst is the Tik Tok US deal, which provides a strong revenue boost despite recent short-term capex concerns.
Oracle: Massive Growth Potential Amid Apprehensions Over Valuation
"Stock number three, Oracle. Now guys, this is an AI name that should catch your attention. As many of you know, Oracle is one of the world's largest enterprise software and technology companies. Historically, it has been known for its database products and enterprise software. But over recent years, the company has transformed itself into a cloud and infrastructure provider with a focus on AI ready services that help enterprises run large-scale workloads. In its most recent quarter, Oracle reported strong revenue growth of 14% year-over-year. Guys, that's huge for a company this large. Cloud revenue alone was 33% and cloud infrastructure was up 66% as businesses increasingly adopt cloud and AI platforms."
The speaker discusses Oracle's evolution from a traditional enterprise software firm to a cloud and AI-focused powerhouse. Despite impressive revenue and cloud growth figures, there remains a level of apprehension about the company's high valuation and heavy capital expenditures, leaving its near-term outlook mixed.
Oracle Offers a Buying Opportunity Amid Volatility
"Oracle is the poster child for stocks that have seen volatility. The profit taking has brought the stock down to key support levels that are still holding, and the RPO grew by 450%, indicating that Oracle's results are set to accelerate. It's a long-term growth story, and while there is volatility, the downside is pretty limited as we come into the new year, making it a good buying opportunity now."
The commentary on Oracle underscores its volatile recent performance but highlights significant support through strong RPO growth. The analyst sees limited downside risk entering the new year and views the current correction as an attractive entry point for long-term gains.
Downgrade Oracle Stock Amid Elevated Valuations
"When the forward PE jumped to around 50 is when I started sending out alarm signals and I downgraded Oracle stock. Remember to start 2025 I had rated Oracle stock as one of the best stocks to buy this year and after the price increased by 50% and the valuations reached these upper levels I downgraded Oracle stock and warned investors that the valuation is getting stretched but now it's back down at near 25 where it was trading at to begin the year and Oracle is arguably in a better position today than it was to begin 2025 because the company has signed significantly more orders. They've delivered on a large percentage of those orders and the overall industry for artificial intelligence turned out the demand even though it was exceptionally high coming into 2025. The results were even better than expected if you can imagine right."
The speaker explains that after Oracle's forward PE spiked from around 25 to 50, he issued alarm signals and downgraded the stock, citing stretched valuations and concerns over Oracle's ability to convert massive orders into profits. Despite the downgrade, he notes that the current valuation has normalized and the company appears in a better position relative to the start of 2025 due to significant order bookings and improved AI demand, although the elevated capital expenditure continues to raise concerns.
Oracle poised for cloud revenue boost amid TikTok JV news
"Oracle, ticker OCL, it's up about 7%. It's still down 15% on the month, but we did recently get news that Tik Tok is said it's being bought by a group of buyers led by the software company Oracle. And the Tik Tok CEO told employees that Bite Dance, their parent company, signed binding agreements to create a joint venture majority owned by American investors, including Oracle. This will drive revenue for Oracle's cloud infrastructure business."
The report highlights Oracle's recent positive developments, including its role in a TikTok joint venture and an upcoming data center project with Open AI, suggesting a favorable impact on its cloud revenue. Despite regulatory uncertainties, the market reaction and analyst commentary indicate potential upside momentum.
Oracle Rated as a Buy Amid Valuation Concerns
"Still, even after those adjustments, Oracle stock looks undervalued at $179 a share compared to the intrinsic value of $29. Now, after applying a margin of safety, this undervaluation is not that extreme. So, I do have Oracle stock rated as a buy and I do think it's undervalued, but it's not all that much. It's not all that great of an investment considering the risk that you would be taking with Oracle stock right now."
The speaker highlights that despite Oracle's stock appearing undervalued at $179 compared to a much lower intrinsic value, the margin of safety is narrow. He explicitly rates Oracle as a buy but cautions about risks related to contract profitability and high spending, suggesting that while the stock has value, the potential rewards might be limited.
Oracle's Strategic TikTok Deal a Long-Term Upside Catalyst
"And then you look and you're like, oh, wait, ticktock. Oh, okay. So that was like the big push. What's the what's Oracle? Oracle is a leading group of investors involved in this joint venture to take control. Because remember, Bytedance, a company that owns, you know, behind Tick Tock, they've been under pressure from the White House because they want to split because its Chinese owner, Bytedance. And so now Oracle has kind of leading this group and it's expected to close January 22nd. This is a nice win for Oracle, some upside optionality over the long term."
The speaker highlights Oracle's leading role in a joint venture aimed at taking control of TikTok amid geopolitical pressure on Bytedance. The memo circulated to employees, along with participation from Silver Lake and MGM, is cited as a strategic move providing long-term upside despite near-term financing concerns.
Oracle's TikTok Deal as a Catalyst for Upside Optionality
"Um, Oracle, there was all this talk about, oh my AI, AI, are they going to live up to it? Oracle talked and that's what I thought cuz I heard Oracle share up 5%. What's going on? And then you look and you're like, 'Oh, wait. Tik Tok.' Okay, so that was like the big push. Oracle is a leading group of investors involved in this joint venture to take control because Bite Dance, the owner of TikTok, has been under pressure from the White House. Evercore ISI has an outperform call on Oracle, noting that while financing needs for its AI infrastructure remain a debate in the near term, this is a nice win for Oracle with some upside optionality over the long term."
Oracle is being spotlighted for its emerging role in the TikTok joint venture, seen as a strategic move amid regulatory pressures on Bite Dance. The commentary suggests a bullish sentiment, reinforced by an outperform rating from Evercore ISI, with the deal potentially unlocking upside optionality, despite near-term financing debates related to its AI infrastructure.