Oracle Corp. (ORCL), the US software giant, has beaten Microsoft (MSFT) in the bid for TikTok, according to sources consulted by Bloomberg. This will allow the Chinese short video application to continue operating in the United States since President Donald Trump warned of the ban on the Chinese social network if it did not reach an agreement with a US company before September 15.
This ultimatum is part of the trade war between China and the United States, as Trump considers TikTok a threat to national security, like other Chinese companies such as Huawei, which has already suffered restrictions on US soil.
It is not yet clear that the White House will approve the operation or if Chinese officials will finally agree to the sale or restructuring of TikTok. Microsoft had positioned itself as the most likely option but finally, ByteDance, the owner of the application, rejected their offer.
The shares of Oracle rose dramatically in the pre-market today. Here are some points to consider in the context of this big move:
- Oracle closed with a fall of half a percentage point last Friday
- In the pre-opening of today, in the early hours, they were trading higher than 12%
- Oracle has appreciated by 45% on the stock market in the past five years
- So far, in 2020 it has risen just over 7%.
The company's stock has demonstrated solid performance throughout 2020 so far.
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Source: Admiral Markets MetaTrader 5. Oracle Daily Chart. Date range: from December 10, 2017, to September 14, 2020. Prepared on September 14, 2020, at 10:30 a.m. Keep in mind that past returns do not guarantee future returns.
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