Oracle Corp. has alerted investors to the potential financial impact of a US ban on TikTok. The company faces challenges due to a new law signed by President Biden that could make providing internet hosting services to TikTok illegal unless certain conditions are met by its Chinese owners. This could result in a loss of revenue and profits for Oracle, as TikTok is one of its largest clients for cloud infrastructure services, generating annual revenue between $480 million and $800 million. U.S. lawmakers have expressed concerns about the security of American users’ data on TikTok, given Chinese regulations requiring data sharing for national security reasons. TikTok has responded by filing a lawsuit to challenge the law, highlighting its partnership with Oracle to separate US data from its Chinese parent company and ensure data security. Despite this collaboration, Oracle has previously remained quiet about its ties to TikTok. The app has faced scrutiny from US lawmakers, leading to the law signed by President Biden giving TikTok 270 days to find a buyer to avoid a ban in the US. Oracle’s stock has seen growth this year, closing at $139.89 on Monday, down 1.14% on the day. In after-hours trading, it fell 0.10%, but has risen 34.43% this year according to Benzinga Pro data.
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https://www.benzinga.com/markets/equities/24/06/39470496/joe-bidens-tiktok-ban-could-adversely-impact-oracles-revenue-and-profit-tech-giant-warns
Oracle Warns Joe Biden’s TikTok Ban May Negatively Affect Company’s Revenue and Profit
