Under a potential agreement for TikTok’s US operations to be bought by a majority American ownership group, Oracle Corp (ORCL) will reportedly operate the social media platform’s algorithm. According to a senior White House official on Monday, a potential deal for the US to take ownership of TikTok operations in the country is close. If completed, the deal will transfer control of TikTok’s US operations, along with a copy of the algorithm, to a new joint venture based in the United States. That ownership group will have majority American investors and will be run by a majority American board of directors, the official said.
“We are 100% confident that a deal is done,” White House Press Secretary Karoline Leavitt said last Saturday, adding that it would likely be signed “in the coming days.”
Oracle stock (ORCL) is already up 28% in the last 30 days, as well as up over 80% year-to-date. Oracle is heavily involved in the AI race, embedding generative and predictive response applications. They are collaborating with companies like OpenAI for infrastructure and providing tools to build and customize AI agents. They also host Oracle AI World and are moving a step ahead of Nvidia in the race, heating its stock price. Should Oracle be involved in TikTok if the US deal goes through, it could catalyze the ORCL price.
Also Read: Amazon (AMZN) Receives Wall Street Upgrade: $280 Inbound?
Most analysts agree on Oracle’s potential, with Guggenheim and TD Cowen both setting a $375 price target, while Mizuho targets $350. Bernstein is slightly conservative with a $308 target but maintains an Outperform rating. Mizuho shows historical strength in price prediction with a 99.57 price target score.
“Oracle’s Q1 represents not only the biggest bookings number we’ve ever seen in software, but a fundamental shift in the business model towards Data Center Operator,” said Morgan Stanley analyst Keith Weiss last week. This makes Oracle a clear winner above Nvidia in the ongoing AI stock market race. In conclusion, taking an entry position in Oracle now could prove beneficial as the long-term prospects look promising
