TikTok U.S. Usage Stabilizes as Initial Fears of Mass User Exodus Prove Overstated

New Sensor Tower data reveals TikTok’s U.S. daily active users remain at 95% despite ownership changes involving Oracle and MGX, debunking boycott narratives.

By: AXL Media

Published: Mar 9, 2026, 12:16 PM EDT

Source: CNBC

The Structure of the TikTok USDS Joint Venture

The transition of TikTok’s American operations was triggered by a federal executive order, resulting in a complex ownership structure designed to mitigate national security concerns. Under the current agreement, ByteDance retains a minority stake of 19.9%, while a consortium of investors—including Oracle, Silver Lake, and Abu Dhabi-based MGX—each hold 15% shares. This reorganization placed Larry Ellison’s Oracle in a pivotal technical role, specifically tasked with retraining and testing the content recommendation algorithm using U.S.-based data. This shift was intended to create a "sovereign" data environment, though it immediately sparked concerns regarding political influence over the app's powerful discovery engine.

Allegations of Algorithmic Bias and Technical Glitches

Immediately following the ownership transition on January 23, 2026, users reported a series of service disruptions that fueled theories of political suppression. Reports surfaced of "error messages" appearing when users searched for controversial terms or shared content critical of federal agencies. While independent analysts attributed these issues to power outages and the technical friction of migrating massive datasets to Oracle’s cloud infrastructure, the timing led to significant public distrust. Despite these anecdotal reports, engagement metrics have rebounded, with the average time spent on the app returning to 80 minutes per day after a negligible dip during the transition week.

Strategic Analysis of the Social Media Competitive Landscape

The recent turbulence provided a rare window for alternative "algorithm-free" platforms to capture market share. Platforms such as UpScrolled, Skylight Social, and Red Note experienced triple-digit growth in downloads during the final week of January. However, this migration proved to be ephemeral; UpScrolled's new installs plummeted by 80% just one week after its peak. This trend highlights the "network effect" advantage held by TikTok, where the depth of content and maturity of the user base create high switching costs for consumers. Strategically, the failure of these alternatives to stick suggests that American users prioritize product functionality and entertainment value over the abstract concerns of corporate ownership or data sovereignty.