Shares of software company jumped only 12% so far this year. The company experienced the majority of share price gains amid the TikTok deal. Oracle has received Donald Trump’s blessing for the deal. Oracle plans to purchase a 12.5% stake in TikTok. The deal is still waiting for the final approval from the US and the Chinese government. The reports are suggesting that the White House administration will wait unit after the election to finalize the deal as the Trump administration is busy with the presidential election campaign. Although the company has aggressively been moving its revenue base towards cloud and autonomous databases, the pace of revenue growth is likely to remain sluggish in the days ahead.

Besides the TikTok deal, analysts are seeing a limited upside for the Oracle stock price ahead. This is because of sluggish revenue and earnings growth trends.     The company has generated a 1.6% year-over-year increase in first-quarter revenues. Its cloud services and license support revenue of $6.95 billion grew only 2% from the past year period. On the positive side, the company’s strategy of enhancing operational efficiencies resulted in a 12% year-over-year gain in operating income in the latest quarter. Oracle stock price has already reached the analyst’s stock price targets. Morgan Stanley has set a $62 price target with equal weight ratings while Piper Sandler has provided a $50 price target. Meanwhile, Cowen’s analyst J. Derrick Wood has issued a street high price target of $70 amid growth in cloud license revenue.