Oracle Stock: Shares Tumble Despite TikTok Connection

Oracle's stock experienced a significant decline on the US market, dropping by 4.38 percent or $6.74 to $147.19. The software company's shares had already fallen by 3.79 percent to $148.10 earlier in the trading session, with the downward momentum intensifying throughout the day. This negative performance has surprised market observers, particularly given Oracle's potential to benefit from the ongoing TikTok situation in the United States. The technology firm plays a crucial role in "Project Texas," an initiative designed to store American user data within the US, with Oracle monitoring data flows and software updates. This positioning could potentially provide Oracle with substantial business opportunities if the project moves forward as an alternative to a complete TikTok sale.

TikTok Developments Could Benefit Oracle Long-Term

The backdrop to Oracle's stock decline involves continuing discussions about TikTok's future in America. Recent developments include potential trade concessions to China that might facilitate approval for a TikTok transaction. Under current US legislation, the short-video platform must either be sold by its Chinese owner ByteDance or exit the US market by April 5. However, ByteDance continues to advocate for "Project Texas" as a viable alternative, which would place Oracle in a central oversight position. This arrangement could ultimately prove advantageous for the software company, making the current price drop potentially attractive for strategically-minded investors. The final decision regarding algorithm sales rests with Chinese authorities, who must approve the export of software algorithms.

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Source StockWorld