TECH - Joe Biden's TikTok Ban Could 'Adversely' Impact Oracle's Revenue And Profit Tech Giant Warns | Benzinga
Oracle Corp (NYSE:ORCL) has cautioned investors about the potential financial implications of a U.S. ban on TikTok.
What Happened: Oracle, in a regulatory filing on Thursday, highlighted that a new law signed by President Joe Biden in April could make it illegal to provide internet hosting services to TikTok, unless certain conditions are met by its Chinese owners.
The company stated, “If we are unable to provide those services to TikTok, and if we cannot redeploy that capacity in a timely manner, our revenues and profits would be adversely impacted.”
Oracle’s cloud infrastructure is used by TikTok to store and process U.S. user data, making it one of the company’s most significant customers in this area. The potential ban could lead to a substantial loss in revenue for Oracle.
Analysts estimate Oracle’s annual revenue from TikTok to be between $480 million and $800 million. This revenue is a significant contributor to Oracle’s cloud infrastructure business, which generated about $6.9 billion in sales ...