TikTok Partners with U.S. Firm for New Joint Venture - Bloomberg
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
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Should l Buy ORCL?
Source: SeekingAlpha
TikTok's New Joint Venture: TikTok CEO Shou Chew announced that ByteDance has signed agreements to establish a U.S. joint venture, primarily owned by American investors, with partners including Oracle, Silver Lake, and MGX.
Focus on Data Security: The new joint venture will operate independently, overseeing U.S. data protection, algorithm security, content moderation, and software assurance, while TikTok's global entities will manage broader commercial activities.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
Current: 156.480
Low
180.00
Averages
309.59
High
400.00
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.
Concerns Over TikTok's User Exodus in U.S. Appear Overstated
- User Engagement Rebound: Following a brief spike in deletions after the announcement of TikTok's U.S. joint venture, Sensor Tower data indicates that daily active users in the U.S. remain around 95%, demonstrating strong user loyalty despite initial concerns.
- Stable Download Figures: TikTok recorded 870,000 and 800,000 downloads in the two weeks post-announcement, while the new social platform UpScrolled saw a temporary surge followed by a sharp decline, indicating users' continued preference for TikTok over alternatives.
- No Significant Change in User Experience: Despite concerns over content censorship and algorithm adjustments, analysts note that users generally feel the TikTok experience remains unchanged, suggesting that any algorithm modifications have not led to user attrition but may present new opportunities for the platform.
- Potential Risks and Opportunities: Under new ownership, TikTok faces risks of politically biased content moderation, which could lead to dissatisfaction among users and advertisers if not managed properly; however, current user trust appears to have been restored, reflecting the platform's resilience.
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TikTok's US Joint Venture Shows Minimal User Exodus
- User Activity Stability: Despite a surge in deletions following the announcement of TikTok's US joint venture, Sensor Tower data indicates that daily active users in the US remain around 95%, suggesting that fears of mass user exodus are overstated.
- Usage Time Recovery: The average daily time spent by American users on TikTok has rebounded to approximately 80 minutes, after dipping to 77 minutes during service disruptions, indicating a strong user loyalty to the platform.
- Download Trends Comparison: Following the joint venture announcement, UpScrolled saw a 770% increase in new downloads in one week, but the following week experienced an 80% drop, while TikTok registered 870,000 downloads in the same period, highlighting continued user preference for TikTok.
- User Feedback Stability: Despite concerns over content censorship, analysts note that users report no significant changes in their overall TikTok experience, with many stating that the app still feels strong, indicating a robust adaptability to the new ownership.
See More
Concerns Over TikTok's User Exodus in U.S. Appear Overstated
- User Engagement Rebound: Following a brief spike in deletions after the announcement of TikTok's U.S. joint venture, Sensor Tower data indicates that daily active users in the U.S. remain around 95%, demonstrating strong user loyalty despite initial concerns.
- Stable Download Figures: TikTok recorded 870,000 and 800,000 downloads in the two weeks post-announcement, while the new social platform UpScrolled saw a temporary surge followed by a sharp decline, indicating users' continued preference for TikTok over alternatives.
- No Significant Change in User Experience: Despite concerns over content censorship and algorithm adjustments, analysts note that users generally feel the TikTok experience remains unchanged, suggesting that any algorithm modifications have not led to user attrition but may present new opportunities for the platform.
- Potential Risks and Opportunities: Under new ownership, TikTok faces risks of politically biased content moderation, which could lead to dissatisfaction among users and advertisers if not managed properly; however, current user trust appears to have been restored, reflecting the platform's resilience.
See More
Amazon's Q4 Earnings Report Triggers Stock Sell-Off
- Significant Stock Decline: Following its Q4 earnings report, Amazon (AMZN) saw its stock drop 23% below all-time highs, trading at a price-to-earnings ratio of 25.8, which is near its lowest valuation in modern history, reflecting investor concerns over future cash flows.
- Capital Expenditure Forecast Sparks Panic: The company forecasts a staggering $200 billion in capital expenditures for 2026, while its operating cash flow for 2025 is only $139.5 billion, up 17%, prompting conservative investors to flee amid fears of potential negative free cash flow.
- Accelerating AWS Business Growth: Despite high spending, AWS's revenue growth rate accelerated from 20% in Q3 to 24% in Q4, indicating strong market demand and suggesting continued growth momentum in the coming years.
- Diversified Customer Base: AWS's diverse customer base mitigates risk; although OpenAI is a client, its future commitment to AWS is only $3.8 billion, a small fraction of Amazon's $244 billion backlog, underscoring Amazon's solid position and long-term growth potential in the cloud computing market.
See More
Hyperscalers Set to Boost Cloud Spending Significantly
- Spending Overview: The five largest hyperscalers, including Amazon, Alphabet, Microsoft, Meta, and Oracle, are projected to budget over $700 billion by 2026, reflecting a strong demand for building AI data centers and driving growth in related sectors.
- Capital Expenditure Growth: Amazon plans to spend $200 billion in 2026, a 56% increase from $128.3 billion in 2025; Alphabet's spending is expected to reach $180 billion, with a staggering 97% year-over-year growth, significantly enhancing its market competitiveness.
- Surge in Chip Demand: These five companies are set to spend over $450 billion on GPUs, CPUs, and other AI accelerator chips in 2026, creating substantial market opportunities for chipmakers, particularly for leading firms like Taiwan Semiconductor Manufacturing Company (TSMC).
- Long-Term Growth Outlook: TSMC has raised its annual revenue growth forecast for 2024-2029 from 20% to 25%, and with the rapid increase in AI chip demand, the potential for gross margin and profit growth in the coming years is substantial, making it a valuable investment despite its stock reaching all-time highs.
See More
Oracle Shares Plunge 40% Amid AI Concerns
- Stock Plunge: Oracle's shares have fallen approximately 40% since late October, primarily due to investor concerns over its debt-financed AI data centers and heavy reliance on OpenAI workloads, indicating skepticism about its sustainable growth potential.
- Debt Financing Pressure: Despite raising tens of billions to expand capacity and promoting its role in training OpenAI models, the market is beginning to question the viability of this strategy, which was once seen as a transformative growth engine, reflecting a reassessment of its fundamentals.
- Microsoft's AI Burden: Microsoft's commercial cloud remaining performance obligations have surged to about $625 billion, with roughly 45% tied directly to OpenAI, raising concerns about its future financial health and potentially impacting its stock performance.
- Market Confidence Eroded: OpenAI CEO Altman's firm response to investor doubts starkly contrasts with market reactions, as stocks related to Oracle, Microsoft, and Broadcom have suffered steep declines due to skepticism surrounding OpenAI's commitments, despite Altman's assurances of steep revenue growth.
See More
OpenAI Hires Top AI Developer, Potentially Benefiting These Stocks.
- OpenAI's New Hire: OpenAI has recruited the founder of OpenClaw, a leading independent AI project in recent months.
- Implications for Companies: This development is seen as positive for companies like Oracle, CoreWeave, and Microsoft, which are looking for a successful IPO from the AI startup.
See More
TikTok's US Joint Venture Shows Minimal User Exodus
- User Activity Stability: Despite a surge in deletions following the announcement of TikTok's US joint venture, Sensor Tower data indicates that daily active users in the US remain around 95%, suggesting that fears of mass user exodus are overstated.
- Usage Time Recovery: The average daily time spent by American users on TikTok has rebounded to approximately 80 minutes, after dipping to 77 minutes during service disruptions, indicating a strong user loyalty to the platform.
- Download Trends Comparison: Following the joint venture announcement, UpScrolled saw a 770% increase in new downloads in one week, but the following week experienced an 80% drop, while TikTok registered 870,000 downloads in the same period, highlighting continued user preference for TikTok.
- User Feedback Stability: Despite concerns over content censorship, analysts note that users report no significant changes in their overall TikTok experience, with many stating that the app still feels strong, indicating a robust adaptability to the new ownership.
See More
