The TikTok debacle never really ends, does it? Earlier this week, we saw Oracle win the race to become the booming social media app’s partner. This win was celebrated across all headlines- but the victory was short-lived.
Because Washington just delivered some bad news. The Commerce Department restricted access to TikTok and WeChat on Sunday to follow through with the Trump administration’s executive order. The Department explained that as of yesterday, any download of TikTok and WeChat is now prohibited.
Now, not too much will change for those who already have the apps on their mobile phones. Users just won’t have access to improvements and updates. But further restrictions could still be announced later, including against other apps if they are seen to be used as workarounds.
So, what does this mean? President Trump has officially rejected the Deal between ByteDance and Oracle. And now, we see Oracle moving down on the news – and that’s no surprise given the market’s current tone. And it’s also the reason why, earlier this week, I advised you not to add ORCL to your lineup – but play the bears of MSFT to your advantage.
I’m sure there will be more updates to come – but I, for one, won’t be looking to make any investment decisions off the TikTok news anytime soon.
Trading tip of the week…
A downturned market isn’t always a bad thing.
Let’s get one thing out of the way – the day you accept that the market will always go up and down – will be the day trading becomes more effortless. Because that’s what the market does – but that doesn’t stop most people from freaking out when they see red numbers on the screen.
In reality, if you’re a long term investor, a downturned market is actually a good thing for you. And that’s because you can get the stocks you like “on sale” or, in other words, cheaper than what you would pay in a market rally.
That’s why, when I see a red-ran market, I’m always buying – not selling. Because in the long run, the market will go back up – and you’ll be sitting pretty with your profits.
Earnings report that has caught my eye:
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:
Nike, Inc. (NKE)
I know another retail stock, but I have a good reason for it, as we’ve discussed before.
Any good trader knows it’s essential not to get tunnel vision and instead keep a sharp eye on the entire market to see how things are progressing. So, while retail may not be high up on my list of sectors to invest in – I still keep it in my peripheral view.
Now, NKE is scheduled to report earnings on Tuesday, and unlike the majority of the stocks that make up the retail sector, it’s been flying high over the last few weeks. And while analysts have raised their expectations over the previous few weeks – there’s a lot of uncertainty regarding how the infamous stock will perform.
With that said, these adjustments might make this an attractive profit play to you – but despite NKE’s surprising good fortune recently – it’s still a part of that struggling retail sector. So, we’ll just have to be patient and see what’s to come. But NKE beats expectations; we could see a short-term pop in the stock price, which could deliver some fast cash if you play it right.
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