Oracle's TikTok Deal as a Catalyst for Upside Optionality

about 1 month ago

Lisa Mateo

"Um, Oracle, there was all this talk about, oh my AI, AI, are they going to live up to it? Oracle talked and that's what I thought cuz I heard Oracle share up 5%. What's going on? And then you look and you're like, 'Oh, wait. Tik Tok.' Okay, so that was like the big push. Oracle is a leading group of investors involved in this joint venture to take control because Bite Dance, the owner of TikTok, has been under pressure from the White House. Evercore ISI has an outperform call on Oracle, noting that while financing needs for its AI infrastructure remain a debate in the near term, this is a nice win for Oracle with some upside optionality over the long term."

Oracle is being spotlighted for its emerging role in the TikTok joint venture, seen as a strategic move amid regulatory pressures on Bite Dance. The commentary suggests a bullish sentiment, reinforced by an outperform rating from Evercore ISI, with the deal potentially unlocking upside optionality, despite near-term financing debates related to its AI infrastructure.

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