Profit Pregame

How to Profit From The $30 billion Battle for TikTok

The TikTok battle continues…

Who knew one of the highest stakes deals of 2020 would be over a social media platform? I guess I shouldn’t be surprised – social media has grown to be one of the more profitable businesses out there. But regardless, the battle for TikTok is one for the history books.

Recently, Microsoft announced their bid for Tik Tok. And now, Microsoft has teamed up with a thriving retail giant to win over the 800 million users’ short-form video application. That giant? Walmart. And after the announcement, Walmart’s shares skyrocketed, hitting a 52-week high of $139.35.

Microsoft and Walmart are just one of the companies trying to acquire TikTok. But TikTok’s parent company announced that they are nearing an agreement to sell its U.S., Canadian, Australian, and New Zealand operations. To who? No one is sure, but the deal is likely to be $20-$30 billion.

Now, with that said, I’m going to be keeping a close eye on this deal. But regardless of if Walmart clenches the contract – I still believe that it’s a good buy seeing that it’s fared well through the pandemic and is rolling out new growth plans daily (including Walmart+ aiming to rival Amazon Prime.)

And no worries, I’ll be sure to keep you updated on how this deal plays out in the end.

The earnings report to watch:

It’s another week of earnings reports.

And I know you don’t have time to be sifting through all the numbers and news.

So, here’s the one I’ll be focusing on, and I think you should too:

Zoom Video Communications, Inc. (ZM).

If anyone has benefitted from the remote work situation that has grown from the pandemic, it’s companies that help remote work more run smoothly. And ZM is one of those. ZM helps businesses bring their employees together, from across the globe, in an easy and seamless environment. Boasting a reliable cloud platform for video, voice, content sharing, and chat, ZM has seen a boost in business as businesses have continued to keep their employees at home.

ZM’s last earnings report shocked Wall Street – but many analysts worry that ZM can’t uphold the momentum as the economy slowly reopens. But here’s the thing, ZM shares have climbed 330% in 2020 – and 25% in the last two weeks. So, I believe that this stock’s strong performance is here to stay for a while.

And that’s the exact reason I’m looking forward to seeing the numbers this company posts I’ll keep you updated.

Trading tip of the week…

My tip of the week?

Be cautious when it comes to shortened trading weeks.

Next Monday is labor day, so that the market will be closed. And usually, with an upcoming holiday, we see slowness in stock and option volume. And I’ll believe this slowness will be strong Wednesday – Friday.

Now, I know this may not seem like a big deal – it can be if you’re not careful. And that’s why it’s essential to keep a close eye on premium. Because with holidays and shortened trading weeks, time decay becomes even more prominent.

With that said, if I am long in calls, I will often sell them ahead of a holiday due to this fact. So, this week, be sure to check in our portfolio and take a close look at your current open positions. And trust me, in the long run, you’ll be glad you did.

More and More Reasons for Optimism

Even as businesses begin to re-open, Zoom continues to rise…

It seems as though many of them haven’t re-opened to full capacity, and there are plenty who have decided to stick with remote working after experiencing better-than-expected results.

But Zoom is just one in a long line of stocks my S.C.A.N. trading system has recognized the growth potential for during this unpredictable time.

In fact, just Wednesday, this system delivered a recommendation that my Project 303 readers and I were able to turn into a fast 56% return!

Click here now to see what else we have our eye on.

Community Tips

Inline Feedbacks
View all comments