ByteDance Forms Joint Venture with Oracle, Transferring Control of TikTok's US Operations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Joint Venture Formation: ByteDance has signed agreements with Oracle to establish a joint venture that will control TikTok's U.S. operations, marking a significant step toward avoiding a U.S. ban, although uncertainty remains regarding the ownership of the algorithm.
- Data Control Transfer: The new joint venture will handle U.S. user data and the recommendation algorithm, while ByteDance retains control over TikTok's revenue-generating operations, ensuring continued profitability in the U.S. market.
- Core Algorithm Value: TikTok's recommendation algorithm is considered crucial to its global success, with analysts noting that it is based on user interest signals rather than social graphs, enhancing user engagement and competitive positioning.
- Market Competitive Advantage: As an early entrant in the short-video market, TikTok leverages its algorithm and mobile optimization to outpace competitors like Meta and Alphabet, creating significant market barriers.
ORCL
$191.97+Infinity%1D
Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORCL is 352.52 USD with a low forecast of 175.00 USD and a high forecast of 415.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
25 Buy
11 Hold
1 Sell
Moderate Buy
Current: 180.030
Low
175.00
Averages
352.52
High
415.00
Current: 180.030
Low
175.00
Averages
352.52
High
415.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
