Because this analyst says Microsoft’s LinkedIn acquisition bodes for TikTok

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According to Rosenblatt Securities, social media corporations can gain favorable wind advantages over the next 12 months if Microsoft becomes TikTok’s U.S. suitor.

Analyst: Mark Zgutowicz kept a purchase note on Snapchat (NYSE: SNAP) an acquisition note with a target value of $30; an acquisition note on Facebook (NASDAQ: FB) with a target value of $325; an acquisition note on Spotify (NYSE: SPOT) with a target value of $325; and a purchase note to rent on Twitter (NYSE: TWTR) with a target value of $33.

Points to remember: President Donald Trump issued two executive orders on August 6 relating to ByteDance and TencentHoldings, which prohibit any U.S. user or company from “dealing” with one of The Chinese-based parent companies or subsidiaries beginning September 20.

With respect to Tencent, “we see de minimis implications in our coverage, but a big question that Apple faces and whether WeChat iPhone downloads/updates through the App Store constitute prohibited ‘transactions’ with any of the companies,” Zgutowicz said on a note Monday. . Training

By contrast, Microsoft Corporation (NASDAQ: MSFT) seems to have the advantage in any scenario similar to a imaginable acquisition of TikTok, the analyst said.

“We suspect that Microsoft’s bank account [behaves] at the negotiating table, as well as its past/present ties to TT and the obvious favor it has in the White House.”

Looking through the prism of Microsoft’s acquisition of LinkedIn, TikTok can only its monetization potential and its user engagement goals with Microsoft as a suitor, he said.

Price shares: Snap shares were traded 2.27% to $22.07 in Monday’s last review, while Facebook shares fell 1.89% to $263.38. Spotify shares fell 1.43% to $282.42. Twitter shares rose 1.18% to $37.58.

Latest notes for MSFT

Date

Strengthen

Action

Delaware

To

July 2020

Oppenheimer

Demotions

Overcome

Make

July 2020

Piper Sandler

Keeps

excess weight

July 2020

Raymond James

Keeps

Buy hard

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