Oracle (ORCL) Emerges as Lead Investor in TikTok’s U.S. Operations - Tech Giant Bets Big on Social Media Future
Oracle just placed its biggest bet yet on the future of social media—and it's not building its own platform.
The Cloud Power Play
Oracle's massive infrastructure investment positions TikTok's U.S. operations for unprecedented scalability. This isn't just about storage—it's about processing power that could redefine real-time content delivery across North America.
Data Sovereignty Solution
By anchoring TikTok's stateside operations, Oracle effectively solves the data governance puzzle that's haunted regulators for years. The move creates a clean separation between international and domestic data flows while maintaining platform integrity.
Enterprise Meets Entertainment
Watch for Oracle's enterprise tools to quietly integrate into TikTok's backend—think advanced analytics for creators, sophisticated moderation systems, and potentially even blockchain-based content verification. The boring business software company suddenly looks anything but.
Because when you can't beat the disruptors, you just write them a check and call it innovation—Wall Street's favorite magic trick.
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To keep TikTok running in the U.S., President Donald TRUMP is expected to sign an executive order that will support this new deal. This is because under a federal law that was passed with bipartisan support, ByteDance was told it had to either sell TikTok’s U.S. operations or face a ban over national security concerns tied to the app’s algorithm. It is also worth noting that last week, Trump signed another order to give ByteDance until December 16 to finalize the divestiture.
Interestingly, the U.S. government won’t take a stake or special control in the new company like it has recently done with other firms. Instead, Oracle will handle TikTok’s security, and the board of directors will be mostly American. Trump also suggested that people like media moguls Rupert and Lachlan Murdoch, Oracle’s Larry Ellison, and Dell Technologies (DELL) CEO Michael Dell may take part in the deal.
Is ORCL Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ORCL stock based on 26 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average ORCL price target of $338.37 per share implies 15.7% upside potential.
