Microsoft Buying Tiktok & the Stocks

Hey guys, welcome to the show Patrick here. Hope you're having a great day on eight August. The third. Welcome to new month of August, a lot of exciting stuff going on, and this is going to be a weekly market update I've been doing here recently. I really it's crazy how much stuff's been going on. Really crazy, a lot of positive stuff out there. So dive right into it about Microsoft looking into buying tik tok, the Apple stock split and, and basically the unemployment numbers coming up Friday. 

So a lot of big news going on a lot of big things out there. So first thing, first five, Microsoft's been looking at buying tik tok, which is kind of interesting because I feel like everybody is pretty strong social media presence, or like, you know, like Twitter, Snapchat, Facebook, you know, they're, they're making a lot of money off these platforms. And so I think Microsoft actually looking to get into the game is interesting, but it makes sense because they're making so much money off their cloud computing and everything else. 

Why not try a tik tok deal? I mean, why not try it? So it makes pretty much sense. So Microsoft was talking Sunday about how it's moving forward with talks about tech talk. After speaking with president Trump and cause he's looking, he was looking at banning the app in the US because byte dance, they're the primary holders and they're Chinese company and due to concerns and constantly closures and tensions with China, kind of getting rough again, it only makes sense to kind of, kind of ban their stuff. 

And in China, they literally been everything you to all this stuff, it's crazy how like closed off Chinese. And so it would only make sense to, for president Trump to move to banning it because it is a Chinese app. It probably collects data and send it to China and definitely has some ball stuff in there. So it only makes sense, but selling it to us company like Microsoft, they can go in actually adhere to the rules and regulations in America. 

And it'll be an American owned software. And for people who don't trust Microsoft, they, they do have lots of DOD contracts with the government and their windows. They run their windows on every government. Computer is windows. So Microsoft is definitely trusted. And so that's why president Trump has been speaking with Microsoft and their CEO about getting this deal underway. 

And Microsoft made a statement. They said, quote, "Microsoft really appreciates the importance of addressing the president's concerns is committed to acquiring tick top subject to a complete security review and providing proper economic benefits to the United States, including the United States treasury". 

And so Microsoft is really, I think they're going to make a pretty big power play here. And I think it's a really, really great play because tick tock is just crushing it and crushing it. And so it's a great play. 

So the forecast for this week, I think in moving forward from Microsoft, they're, they're looking to close the deal by September 15th of this year. And you know, really I can see the stock it's, it's hovering around two hundreds right now. I could easily see it shooting up to two 20, two 30 ish, fairly easily with a merger, maybe even higher. And because I mean that, I mean, that would just be huge. That's a huge pickup and that puts them in the game against people like Facebook and Instagram. 

And now that adds more pressure to Facebook. So I think it's a really crazy, definitely going to heat it up. And I also want to point out last week, the earnings reports were extremely strong. So this whole investing in tech thing, everybody is saying is a bubble. It's a fad. No, they all, the tech companies proved it. And that kind of transitions into the Apple stock split coming up. So Apple is going to do a fourth one split. So here's what that means. 

So basically looking at Apple, I think they're going to do it August 25th. So looking at a stock split from Apple, let's say it ends the day on August 25th at $400. It'll split four for one. So for every one, $400 stock, you have, you'll get four of it split, divided by four. So while it's really confusing the way I just said it. So basically if Apple's worth 400, you'll get four, $100 shares. 

So if you have $800 worth, you'll get eight, $100 shares. So basically you're getting a hundred dollars a share. That's what's going to happen. Now, this doesn't actually add any value or anything. It's simply purely cosmetic. It doesn't change anything about the company. It just leads to renewed interest from smaller investors, by making the shares more cheaper and more accessible. And a lot of times this actually leads to an increase in price because people will buy in and they'll be like, Oh wow, it's only a hundred dollars for a share of Apple now. 

Cause right now it's hovering around 400 and you know, Warren Buffett, he's holding 50% of his portfolio is in Apple. And I mean, that's pretty big thing to say and would do. Cause I mean, look at their earnings last Thursday, they crushed it. Every number was amazing. I mean their iPhone sales are kind of faltering a little bit. Their peripherals like watches and Mac books definitely definitely made up for it. And they're definitely filling the gap. Apple is as strong as ever. 

And so I think making the shares a hundred dollars is awesome because now people can buy way more into it and that'll add a lot more market cap to Apple. And then, you know, moving on here, we had the last thing, last thing going on August the seventh, which is Friday this week, it's going to be the unemployment numbers. And I think this is going to be pretty important because right now we have a tech rally and I believe all this week is going to be a rally because all this awesome news, unless something comes in like coronavirus news or something, but we're, we're having really great economic news in the tech sector. 

And so I'm feeling like everything's going to be pretty strong, but Friday we're going to hit a pretty key point, which is going to be unemployment numbers. And I say that because the unemployment numbers are going to tell a story of, well, how are people are people getting back to work? Is the economy really, really strong and getting back to where it was even in the midst of this pandemic. And I feel like those unemployment numbers really help and give those really solid indications. 

Now there's another stimulus round going to be passed this month, hopefully. And there's talking about the unemployment benefits, maybe lowering them. That's what the Republicans want. Obviously the Democrats want to make them astronomically high. And so I think they're going to meet in the middle and looking at the last payments were sent out Friday, the 31st, the $600, the end of it. So hopefully that will spur people to get back in the employed sector. 

So Friday, hopefully those numbers will kind of be like, Oh look, we're getting jobs back. He was getting back to work. And then we can have a smaller package of unemployment for people because I mean people, yeah, the people don't understand that in the long run, these things that we're doing right now are going to hurt us. So we had to be careful. I'm not doing too much. W I mean, you can't can't make something out of nothing, you know? So we had to be careful that we don't overextend and we play it kind of interestingly and just want to throw it in random a thing I got from last week, the feds held the rates. 

They didn't change interest rates. And I don't think they plan on doing it for a long time. So it hovers near 0%. So definitely if you have cash, you probably probably sitting on cash right now is not the best of ideas. So I've definitely, definitely not doing that. And that's my thought in the matter of the subject. So hope you guys got something from this hope you're ready for this week coming up. I definitely am pretty excited, pretty pumped. I have a lot of awesome stocks. I have a lot of awesome days look forward to of, you know, making awesome returns and yeah, just going to be a great week guys. 

So, Hey, let me know how your trades go head on over to entrepreneur.com. As soon as the email and worldly feature you and tell us what you're into. Tell us what you're looking out for. What stocks are you watching right now? You know, what's, what's under the radar. Something like space. Are you looking at, you know, Snapchat, what are you looking at? So just let us know, head on over, drop an email they solution show have a great day. 

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