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Microsoft Share Price Tanks As $50 Billion TikTok Acquisition Weighs on the Stock

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Simon Mugo

Shares of Microsoft Corp (NASDAQ: MSFT) today fell 2.16% extending yesterday’s decline even as the company works to acquire Chinese social media app TikTok, which has been sanctioned in the United States.

Investors and analysts alike are torn on whether the TikTok acquisition will work out for the tech giant, or whether it will be another failed project that costs Microsoft $50 billion.

The acquisition would plunge Microsoft into the murky waters of social media including the regulatory scrutiny that has fallen on Facebook and Twitter in the recent past.

Daniel Elman, an analyst at Nucleus Research said: “Combating misinformation will need to be a mission-critical priority. Microsoft will be new to this as it doesn’t have experience managing a high profile social network at this scale,”

Adding that: “…if any company can acquire or quickly develop the requisite skills and capabilities, it is Microsoft.”

Microsoft share price

Tradingview chart of Microsoft chare price 11082020

Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.