Microsoft And Oracle Could Be TikTok's 'Likely Buyers,' But Real Winners Would Be Mark Zuckerberg And Sundar Pichai
Portfolio Pulse from Rounak Jain
Wedbush analysts suggest Microsoft Corp. (MSFT) and Oracle Corp. (ORCL) as likely buyers for TikTok, but Meta Platforms Inc. (META) and Alphabet Inc. (GOOG, GOOGL) could benefit the most if TikTok exits the U.S. market. This follows a U.S. House bill proposing a TikTok ban or forced sale to address national security concerns, potentially redistributing TikTok's U.S. revenue to Meta and Google.
April 22, 2024 | 2:20 pm
News sentiment analysis
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POSITIVE IMPACT
Alphabet could see a benefit from TikTok's U.S. exit, with YouTube likely to attract a portion of TikTok's user base.
19% of TikTok users may switch to YouTube, enhancing Alphabet's user engagement and ad revenue, which could positively affect its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Alphabet, under its GOOGL ticker, stands to gain from a potential TikTok U.S. exit, with YouTube as a key beneficiary.
Similar to GOOG, the GOOGL ticker represents Alphabet's potential gains from increased YouTube usage if TikTok exits the U.S., positively impacting stock value.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Meta Platforms could gain the most if TikTok exits the U.S., with users likely shifting to Facebook or Instagram.
With 60% of surveyed TikTok users indicating a preference for Meta's platforms, the company stands to gain significantly in terms of user base and revenue, positively impacting its stock.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Microsoft is considered a likely buyer for TikTok, which could enhance its position in the social media landscape.
As a potential buyer, Microsoft's acquisition of TikTok could expand its social media presence and diversify its portfolio, positively impacting its stock in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Oracle is mentioned as a potential acquirer of TikTok, which could broaden its technology and media offerings.
Oracle's interest in TikTok signifies a strategic move to enter the social media space, which could positively influence its stock price if the acquisition proceeds.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70