Oracle warned investors that a new law potentially banning TikTok in the US threatens to hurt its financial results.
“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.”TikTok uses Oracle’s cloud infrastructure to store and process US user data, and is considered by many Wall Street analysts to be one of the Austin-based company’s largest customers for that closely watched business.
Oracle’s annual revenue from the popular video app may be in the range of $480 million to $800 million , estimated Kirk Materne, an analyst at Evercore ISI. The growing cloud infrastructure business, fueled by demand for artificial intelligence work, has helped propel Oracle’s shares to a 34% gain this year through Friday’s close.US lawmakers have long been concerned that TikTok poses a security threat to US users because China requires its companies, upon request, to share any national security-related data with the government.