Key Takeaways
- TikTok's US operations are valued at $14 billion, with Oracle (ORCL), Dell (DELL), and Rupert Murdoch identified among key investors, alongside Abu Dhabi’s MGX and Silver Lake, with Oracle expected to play a major role in the app’s security.
- President Trump announced that the US government expects to generate tax revenue from the TikTok deal, which he stated has China's support, despite some earlier indications of resistance.
- Costco Wholesale Corporation (COST) reported robust Q4 2025 earnings, surpassing analyst estimates with an EPS of $5.87 on $86.16 billion in revenue.
- Starbucks (SBUX) is undertaking a significant restructuring effort, which includes the closure of several stores, to deepen its operational changes.
- US money-market fund assets rose to a record $7.31 trillion, contrasting with the Dow Jones Industrial Average, which unofficially closed down 161.84 points (0.35%) at 45,959.44.
TikTok Deal Details Emerge
President Donald Trump has provided further details on the evolving TikTok deal, confirming that American investors are taking control of the popular social media application's US operations. The US version of TikTok is reportedly valued at $14 billion, according to Vice President Vance. Key investors in the deal are said to include Dell (DELL) and Rupert Murdoch, with Larry Ellison also named as a participant. Additionally, Abu Dhabi’s MGX is joining Oracle (ORCL) and Silver Lake as a lead investor in the transaction.
Oracle is expected to play a crucial role in the app’s security, overseeing its operations as American stakeholders take charge. President Trump expressed satisfaction with TikTok’s security measures under the new arrangement. He also stated that China is on board with the TikTok deal, signaling cooperation between the US and China on the app. This follows earlier discussions between President Trump and China’s President Xi. However, US Vice President Vance noted some resistance from China regarding the deal. President Trump has also signed an executive order related to TikTok.
The US government anticipates making tax money from the TikTok deal, with Trump referring to it as a "tremendous fee-plus" for facilitating the agreement.
Corporate Earnings and Restructuring
In other corporate news, Costco Wholesale Corporation (COST) announced its Q4 2025 earnings, reporting an EPS of $5.87, which surpassed estimates of $5.82. Revenue for the quarter reached $86.16 billion, slightly above the $86.03 billion estimate. Total company comparable sales, including gas and currency effects, grew by 5.7%, just under the 5.85% estimate, while excluding these factors, sales grew by 6.4%, beating the 6.21% estimate.
Meanwhile, Starbucks (SBUX) is undergoing a significant restructuring. Reports indicate the coffee giant is closing stores, including its iconic Seattle roastery, as its CEO deepens the restructuring efforts.
Market Performance and Economic Indicators
The broader market saw the Dow Jones Industrial Average unofficially close down 161.84 points (0.35%), settling at 45,959.44. In a positive economic indicator, US Money-Market Fund Assets rose to a record $7.31 trillion, according to the Investment Company Institute (ICI).
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.