Oracle (ORCL) and ByteDance’s TikTok are closing in on a crucial data storage deal. According to Reuters, Oracle will store TikTok’s U.S. users’ data on its servers as part of a new strategic partnership. ORCL shares rose 0.72% to close at $76.65 on March 10.
Oracle is a U.S. company that provides products and services that address all aspects of corporate information technology environments.
According to Reuters, sources close to the discussion have confirmed that a dedicated data management team is to be set up to act as a gatekeeper. TikTok is also eyeing partnerships with other technology companies to enhance firewall and cybersecurity measures.
The data storage deal seeks to avert concerns over data integrity as TikTok remains under scrutiny from regulators in America. ByteDance was ordered by a U.S. national security panel to divest TikTok due to concerns that U.S. user data could be accessed by the Chinese government.
While President Joe Biden’s administration has not enforced the divestment, the Committee on Foreign Investment in the United States (CFIUS) remains wary of data security at TikTok. ByteDance hopes to address the concerns through the data storage deal with Oracle. Whether the data storage deal will alleviate the CFIUS’ concerns and resolve national security issues is still unclear.
Stock Rating
Cowen & Co. analyst Derrick Wood has reiterated a Buy rating on Oracle and lowered the price target to $100 from $115, implying 30.46% upside potential to current levels. According to the analyst, the company is on the right trajectory as it accelerates its penetration into the cloud infrastructure market.
Consensus among analysts is a Moderate Buy based on 5 Buys and 9 Holds. The average Oracle price target of $98.64 implies 28.69% upside potential to current levels.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure.
Related News:
Twitter Unveils Tor-Friendly Version to Bypass Russia Restrictions – Report
Blink Drops Over 5% on Larger-than-Expected Quarterly Loss
American Outdoor Drops 11.5% on Poor Q3 Revenue
