New York, Jan 23, 2026, 10:43 ET — Regular session
- Oracle shares dropped roughly 1% in early trading following Thursday’s gains
- TikTok confirmed it has finalized a U.S. joint venture, with Oracle taking a 15% stake and managing data and algorithms on its cloud platform
- Investors are balancing the potential gains from cloud growth with concerns over Oracle’s hefty AI infrastructure costs and funding challenges
Oracle shares dropped Friday as investors weighed its involvement in TikTok’s newly settled U.S. setup and grappled with a persistent concern: how much capital the company will require to back its largest growth initiatives.
The TikTok deal is significant because it places Oracle’s cloud services front and center in a high-stakes project. TikTok has confirmed that its U.S. user data and recommendation algorithms will be hosted on Oracle’s U.S. cloud infrastructure.
Traders continue to see Oracle as a stand-in for gauging whether the push to build AI data centers will deliver returns without putting too much pressure on balance sheets or triggering unwanted financing steps.
Oracle shares dipped roughly 1% to $176.33 by mid-morning in New York, bouncing between a low of $172.15 and a high of $180.18 earlier in the session.
TikTok’s Chinese parent company ByteDance announced Thursday it has completed a majority American-owned joint venture. Oracle, Silver Lake, and Abu Dhabi-based MGX each hold a 15% stake. The company said the new venture will overhaul its recommendation algorithm using U.S. user data and host it securely on Oracle’s U.S. cloud, but offered few specifics about the divestiture. (Reuters)
Oracle’s ownership stake and hosting role have reignited debate over whether marquee clients can give its cloud infrastructure unit an edge in securing workloads that might otherwise be snapped up by bigger players like Amazon.com, Microsoft, and Alphabet.
Yet the announcement leaves clear blanks. Neither TikTok nor the White House has detailed the full financial picture, including how much Oracle stands to make from technology and data services or what expenses it may incur.
Investors are growing more skeptical about heavy capital expenditures linked to AI. “There used to be a strong positive correlation between aggressive capital spending and stock prices … but that relationship has shifted quite a bit beneath the surface,” said Mark Hackett, chief market strategist at Nationwide, back in December. (Reuters)
Oracle is facing legal and investor pressure over its AI expansion. Earlier this month, Reuters revealed bondholders sued the company, accusing it of misleading them about debt plans connected to its AI infrastructure growth. (Reuters)
Friday also delivers a shareholder-friendly update of another sort: Oracle’s quarterly dividend of $0.50 per share is set for payment on Jan. 23, according to the company’s investor website. (Oracle Investor Relations)
Traders are now focused on any new details about TikTok’s governance, cash flow, and the protections in place for data and algorithms. They’re also looking to see if Oracle’s growing infrastructure investments will lead to stronger revenue and better margins.
Oracle’s fiscal third-quarter earnings report is set for mid-March 2026, according to the company’s investor FAQ. (Oracle Investor Relations)
