Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, September 25, 2020

Article Excerpt

WALMART INC., $137.27, New York symbol WMT, remains a buy. The retailer and Oracle Corp. (New York symbol ORCL) have agreed to jointly acquire part of the popular TikTok video-sharing mobile phone app from China-based ByteDance Ltd. The partners will jointly purchase a 20% stake in a new company—called TikTok Global—that will run the app in the U.S. and several other countries (excluding China). By hosting videos and other data on Oracle’s cloud-computing platforms, TikTok Global can avoid allegations that the app is secretly collecting personal user data on behalf of the Chinese government. Walmart will own 7.5% of TikTok Global. It has yet to reveal the purchase price for this stake. As well, TikTok Global plans to sell stock in an Initial Public Offering (IPO) in the next 12 months. Those shares will trade on a U.S. exchange. Walmart plans to use TikTok’s platform to enhance its e-commerce operations, including  Walmart+, its new premium delivery service. That would help it better compete with Amazon.com…