Yesterday, Amazon made a last-minute play to buy TikTok as the Saturday ban deadline approaches. There's a clear reason the $2 trillion megacap company wants TikTok.
(Noushad Thekkayil/Getty Images)
 
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Nintendo has finally dropped more details about its hotly anticipated Switch 2 console, set for a June 5 release and $450 price point in the US. However, the Japanese-language version of the console will be significantly cheaper— a possible opportunity for video console arbitrage? (Our chart shows the price difference between what Japanese buyers will have to pay compared to US buyers.)
It was a wild day in the stock marketyesterday, with stocks rallying ahead of President Donald Trump's tariff announcements. The S&P 500 and Nasdaq 100 rose 0.7%, while the Russell 2000 gained 1.6% as of market close. Then the ceremony at the Rose Garden began.
Once Trump revealed nation-specific reciprocal tariff rates, which include 20% on imports from the EU and 34% on goods from China, major US index ETFs completely fell out of bed. The president framed these levies as "tough love" designed to ensure a level trading playing field and ultimately boost US manufacturing, and the stock market reacted as well as a toddler who's been told "no more screen time."
Yesterday, Amazon made a last-minute play to buy TikTok as the Saturday ban deadline approaches. There's a clear reason the $2 trillion megacap company wants TikTok. It's not simply that it has the cash to pay $40 billion to $50 billion, and it isn't just to snag the world's most viral social media app — it's about the e-commerce giant doing the world's biggest collabwith the leader of social commerce.
JPMorgan analyst Brian Nowak said acquiring TikTok could help Amazon "build a viable social shopping network," citing the app's estimated 32 billion hours of US consumer engagement. TikTok boasts over 15 million merchants worldwide, and 47.2 million Americans bought something through TikTok Shop last year.
Even the founder of OnlyFans has thrown his hat into the ring, partnering with a crypto foundation to try to purchase the app.
But there's another big obstacle to the potential merger: antitrust concerns. While the current administration is much friendlier to M&A than the previous, as one post put it, "An eCommerce giant buying an eCommerce giant (which is what TikTok is at this point) would, in most administrations, raise a few eyebrows."
That said, Trump very much wants to make TikTok Americahappen, so the next few days should be interesting.
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Yesterday saw Tesla shares go on a wild ride, as the perpetual question for the automaker remains, what matters more for the stock: people not spending money on cars, or people spending lots of money on calls?
The day began with a tough miss for the EV champion when it comes to delivered vehicles, but then fortunes shifted after reports that CEO Elon Musk may soon be stepping back from his work in Washington. Here's what went down:
Just before market open, Tesla reported it sold 336,681 vehicles, down 13% from last year and tens of thousands of deliveries shortof average analyst expectations.
Conditions in Q1should have been pretty good for Tesla: no tariff-related price increases for parts yet, the potential elimination of the EV credit as a motivator for buyers, and a big push for 0% financing. With those advantages slipping, why would one expect a turnaround?
Shortly after the bell, the stock bottomed out down just over 5%. Then, well, a turnaround.
After that, Tesla investors got some unexpectedly good news: Musk may soon be leaving the White House, giving him more time to focus on his companies, and the stock quickly reversed its losses for the day.
When all was said and done, the stock finished the day up 5%.
THE TAKEAWAY
Sure, it's been a rough quarter, but it sure seems that a key reason for the sales miss was weakness in the US, and a key driver of that is Musk's newfound political prominence. Dialing that back and stepping out of the spotlight might be just the thing Tesla needs.
With Newsmax's successful community-backed IPO this week, investors may want to keep their eye on Mode Mobile, another crowdfunded startup that was named by Deloitte as the fastest-growing software company in 2023.1
1The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
2Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
Past performance is no guarantee of future results. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.
DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. Please check our background on FINRA's BrokerCheck.
 
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