Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
Microsoft (MSFT) stock jumped 5.62% yesterday to close the day trading at $216.54, but the shares were over 1% down in the pre-market. Yesterday’s growth is attributed to a possible acquisition deal with TikTok.
Microsoft Corporation (NASDAQ: MSFT) stock added $11.53 during the day yesterday to close the market trading at $216.54. The jump is being attributed to news released by the company on Sunday that it is prepared to continue discussions to explore a purchase of TikTok in the United States.
The gains added $77 billion to Microsoft’s market capitalization at intraday highs, bringing its total value to more than $1.6 trillion.
As a result of the China-U.S. cold war, respective jurisdictions are experiencing a hard time adapting to the unprecedented nature of the relationship between the two countries. In this case, TikTok parent company that is based in China ByteDance will presumably have to part with its operations in the United States.
On the other hand, it is a plus for the Microsoft company as it gets to acquire a new line business.
It is a win-win scenario between Microsoft and the United States as it does not want to lose an employer and at the same time reduce China’s tech presence in the country.
During the first half of 2020, Microsoft (MSFT) stock has risen exponentially despite the ongoing coronavirus pandemic. According to its historical figures, it has risen 60.77% in the past one year, jumped 37.31% year to date, added 19.79% in the past three months, 3.98% in the past months, and up 7.19% in the past five days.
Microsoft (MSFT) Stock Strong Fundamentals
The positive performance has not come without opposition especially during the coronavirus market shutdown. The company has also been facing possible increases in regulatory policies due to monopoly issues cited by the American Congress.
“The discussions with ByteDance will build upon a notification made by Microsoft and ByteDance to the Committee on Foreign Investment in the United States (CFIUS). The two companies have provided notice of their intent to explore a preliminary proposal that would involve a purchase of the TikTok service in the United States, Canada, Australia, and New Zealand and would result in Microsoft owning and operating TikTok in these markets. Microsoft may invite other American investors to participate on a minority basis in this purchase,” Microsoft wrote on Sunday.
It is anticipated that the deal will be sealed during the third quarter before the U.S. presidential elections. A time when social media platforms are closely monitored for foreign interference.
Although there are possible challenges ahead, Microsoft (MSFT) stock will be winning out of the TikTok acquisition deal.