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Hey there carnivores,

 

Markets were mixed on Friday, again thanks to tech.

 

Today we’re looking at Oracle making its mark with Gen Z.

 

Keep raging,

Jeff & Jason

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We have a winner

Some huge news broke on Sunday. And not just that Tom Brady is washed up.

 

Oracle will become the trusted technology partner of TikTok, beating out Microsoft and Walmart’s bid for the social network’s US operations.

 

An underdog story

 

All signs (previously) pointed to Microsoft and Walmart being crowned king of the castle, taking ownership of TikTok’s US, New Zealand, Canadian, and Australian operations. That is until Sunday, when Microsoft announced via blog that its bid was rejected and Gen Z’s Vine won’t actually be sold at all.

 

Instead, Oracle will become TikTok’s “trusted technology partner” in the US (whatever the f*ck that actually means), and take a significant stake in ByteDance’s American operations just two days before President Trump’s September 15 deadline for a TikTok sale.

 

As part of this “restructuring” (don’t you dare call it an acquisition), ByteDance won’t actually sell its video-sharing algorithm or source code. This is due, in large part, to China’s new tech-export ruling, which bans certain tech from export without approval from China’s Ministry of Commerce. 

 

Oracle and TikTok’s US operations will be able to develop a new algorithm in its place. That’s like getting a Big Mac without the special sauce.

 

So what does Oracle get? 

 

Great question.

 

The exact details are still being ironed out.

 

Odds are, Oracle would take a stake in the TikTok’s US operations business, which was previously valued near $25B, while also housing the video app’s data on Oracle’s cloud servers. This should help alleviate DC’s security concerns.

 

The bottom line…

 

Oracle, known best for its database software, Windows 98 looking ERP system, and cloud computing technology will now be the trusted tech partner of a flashy, new-age video app.

 

Will this go well? Maybe… but as Box CEO Aaron Levie put it

“Sure, it seems unusual to have Oracle run TikTok. But who will have the last laugh when the TikTok influencers start recommending HR and Finance systems in all their videos.”



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☑️Back in the lab. AstraZeneca has resumed its COVID vaccine testing in the UK after pausing trials on Tuesday. The timeout came after a recipient began to suffer from an undefined illness. While it wasn’t necessarily tied to the vaccine, you can’t be too careful with these things. Just ask Will Smith in ‘I Am Legend.’

 

During the time off, regulators investigated before deciding that it was safe to resume trials. It’s not the first time the trials were paused either. Back in July a woman who had been vaccinated developed neurological symptoms, which later turned out to be MS, and not related to the vaccine. 

 

☑️The new cost of living. VMWare is the most recent Silicon Valley tech firm to explore pay cuts for employees that want to move to a more affordable region. Like VMWare, Twitter and Facebook have already offered the option for employees to work entirely remotely, but they’ll have their pay adjusted, depending on where they end up. You can buy an entire town in Oklahoma on a Silicon Valley tech salary. 

 

How much will they lose? Well, for VMWare, an employee that heads to Denver, for instance, would take an 18% pay cut, while someone headed south for San Diego or LA would get an 8% reduction. Anyone choosing to live in LA deserves whatever they get, though.

 

☑️Bad for business. The Nasdaq suffered its worst week in months after a volatile day on Friday. The index closed down 0.6%. Apple, Amazon, Facebook, Alphabet all fell off a cliff. Live by the tech, die by the tech. 

 

The S&P managed to eke out a 0.1% increase, while the Dow rose 0.5%. At its session high, the Dow was up as much as 1.1%.

 

☑️If you can’t beat ‘em buy ‘em. Gilead is opening its pocketbook and shelling out $21B for Immunomedics, a biotech firm with a breast-cancer drug that’s been making waves.

Gilead will pay $88 per share for the firm, a 102% premium over the $42.25 per share at Friday’s close. The move comes as Gilead hopes to expand into the world of cancer meds. Immunomedics’ Trodelvy will certainly help bolster its portfolio in the space. Estimates believe the breast cancer segment is worth roughly $157B this year. Oh, so they’re not just doing this out of the goodness of their hearts? Figures…


 

Author:
Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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