Oracle’s stock being raised on gossip of a TikTok deal reveals how much Wall Street feeds on rumors. This is not about a social media platform, rather it’s about power, politics, and profit colliding in real time.
Oracle’s entry into the TikTok drama is an unusual combination at first look, as it’s more famous for databases than dance trends, but in the current tech landscape, data is the real money. If the deal goes through, Oracle may get its hands on a profitable business relationship and a political victory.
The proposed TikTok-Oracle deal is in the middle of national security concerns, geopolitics, and corporate aspirations. For Oracle, a successful deal would offer a new revenue stream and an opportunity to shed its “legacy tech” mark through alignment with one of the globe’s most used apps.
Investors evidently believe in the potential, as the premarket jump in the stock indicates enthusiasm over new revenue stream opportunities and added relevance in the consumer space.
However, the deal structure is unclear, and there are questions about ByteDance’s involvement and the real role of U.S control over TikTok data. Geopolitical tensions may destroy negotiations at any moment, and regulatory obstacles are quite far away from being resolved.
Also, while Oracle’s reputation for a stable enterprise is quite good, whether it will be able to bring that to the quick consumer social media environment is a matter of doubt.
Oracle’s involvement is less likely to be about entirely operating TikTok and more about being a trusted data partner. If handled with care, Oracle could make money without straining itself into the unknown.
Oracle’s stock jump tells us that the market adores the concept of this deal, even if the specifics are still unclear. Whether it’s a true turning point for Oracle or simply another short term hype remains to be seen, depending upon negotiations over the next few weeks.
