|Bid||200.05 x 800|
|Ask||200.09 x 1300|
|Day's range||196.25 - 203.65|
|52-week range||132.52 - 232.86|
|Beta (5Y monthly)||0.89|
|PE ratio (TTM)||34.79|
|Forward dividend & yield||2.24 (1.10%)|
|Ex-dividend date||18 Nov 2020|
|1y target est||N/A|
There's a big healthcare stock that debuted on Thursday that investors should take a closer look at: American Well, also known as Amwell. Amwell is a Boston-based telemedicine stock that's also one of Teladoc's (NYSE: TDOC) main rivals. It's not just a trend among young people, either; many seniors are also using telehealth services.
(Bloomberg) -- Donald Trump gave his blessing to Oracle Corp.’s bid for the American operations of TikTok, putting the popular video-sharing app on course to escape a U.S. ban imposed as part of his pressure campaign against China.“I approved the deal in concept,” Trump told reporters Saturday as he left the White House for a campaign rally in Fayetteville, North Carolina. “If they get it done, that’s great. If they don’t, that’s OK too.”The new company, which will be called TikTok Global, has agreed to funnel $5 billion in new tax dollars to the U.S. and set up a new education fund, which Trump said would satisfy his demand that the government receive a payment from the deal. “They’re going to be setting up a very large fund,” he said. “That’s their contribution that I’ve been asking for.”Oracle plans to take a 12.5% stake in the new TikTok Global, while Walmart Inc. said it has tentatively agreed to buy 7.5% of the entity. Walmart’s Chief Executive Officer Doug McMillon will serve on TikTok Global’s board of directors, the retailer said in a statement. Four of the five board seats will be filled by Americans, according to the statement.TikTok’s Chinese owner ByteDance Ltd. is seeking a valuation of $60 billion for the app, according to a person familiar with the matter. Oracle and Walmart would pay a combined $12 billion for their stakes if they agree to that asking price. The final valuation had not been set as the parties worked out the equity structure and measures for data security, the person said. Terms are still in flux and the proposed valuation could still change.The TikTok deal was forced by a pair of bans Trump issued in August over concerns that ByteDance posed a national security risk, thrusting the video-sharing app into the center of the president’s confrontation with Beijing.Shortly after Trump signaled his approval, the Commerce Department on Saturday delayed by a week a ban that would have forced Apple Inc. and Alphabet Inc.’s Google to pull the TikTok video app from their U.S. app stores on Sunday.Trump is ramping up pressure on Chinese-owned apps in the weeks before the Nov. 3 presidential elections, citing national security concerns about the data U.S. citizens provide to them and the potential for Beijing to use them for spying. The president is trailing his opponent Joe Biden in polls and has sought to portray himself as tougher on Beijing than the Democrat.TikTok said in a statement that it was “pleased that the proposal by TikTok, Oracle, and Walmart will resolve the security concerns of the U.S. administration and settle questions around TikTok’s future in the U.S.”The company confirmed Oracle will host all its U.S. data and secure its computer systems. Oracle’s Generation 2 Cloud fully isolates running applications and responds to security threats autonomously, according to the statement, which eliminates the risk of foreign governments spying on American users or trying to influence them with disinformation.“Oracle will quickly deploy, rapidly scale, and operate TikTok systems in the Oracle Cloud,” said Oracle CEO Safra Catz in a statement. “We are a 100% confident in our ability to deliver a highly secure environment to TikTok and ensure data privacy to TikTok’s American users.”Oracle will get full access to review TikTok’s source code and updates to make sure there are no back doors used by the company’s Chinese parent to gather data or to spy on the video-sharing app’s 100 million American users, according to people familiar with the matter.TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will create an educational initiative to develop and deliver an online video curriculum driven by artificial intelligence, according to the statement.TikTok said it’s working with Walmart on a commercial partnership and said that it will take part in a TikTok Global financing round along with Oracle before an initial public offering in which the investors can take as much as a 20% cumulative stake in the company.TikTok Global will likely be headquartered in Texas and will hire “at least” 25,000 people, Trump said. TikTok will need to hire thousands of content moderators, engineers, and marketing staff that were previously located in China and around the world. The company will also pay more than $5 billion in new tax dollars to the Treasury, according to the statement.To sweeten the deal for Trump, TikTok promised to hire an additional 15,000 jobs, more than the 10,000 positions the company already pledged to fill earlier this year. It’s unclear if there’s a timeline to achieve that target, or guarantees that it will follow through. Facebook Inc., the largest U.S. social media company, employed about 45,000 people in 2019, while Twitter Inc. employed only 4,900, according to data compiled by Bloomberg.Proponents of the deal told the Trump administration that the new company would be controlled by American investors by counting the passive stakes of existing shareholders in TikTok’s Chinese parent, people familiar with the matter said. Although ByteDance will have an 80% stake in the new company, existing U.S. investors hold a 40% stake in ByteDance. That tallies up to 53% ownership by U.S. companies and investors -- although that doesn’t entail majority control or voter rights, the people said.TikTok Global, which will be an independent company, will hold an initial public offering in less than 12 months and the stock will be listed on a U.S. exchange, according to the statement. After going public, U.S. ownership of TikTok Global will increase and continue to grow over time, it added.While the Chinese government must now sign off on the transaction for it to go forward, as of earlier this week, ByteDance was growing increasingly confident that the proposal would pass muster with Chinese regulators, people familiar with the matter told Bloomberg.Early reaction from Chinese state media appeared positive. “This scheme is still unfair, but it avoids the worst result, that TikTok is shut down or sold to a U.S. company completely,” wrote Hu Xijin, the influential editor in chief of China’s state-owned Global Times.Under the terms of the agreement reached early in the week, ByteDance would retain a majority of TikTok’s assets and control over the algorithm, with Oracle and other U.S. investors taking minority stakes.Trump seemed to contradict that on Saturday. “It will have nothing to do with China, it’ll be totally secure, that’ll be part of the deal,” he said. “All of the control is Walmart and Oracle, two great American companies.”Trump spoke with Oracle Chairman Larry Ellison and Walmart’s McMillon on Friday, telling them he still expected the U.S. government to receive a cash payment as part of the transaction, according to people familiar with the matter. They agreed to the educational donation as a way to satisfy Trump’s demand, one of the people said. ByteDance first heard about the $5 billion education fund from news reports, a company spokeswoman said.The deal came together last weekend, the result of high-level negotiations between ByteDance, Oracle and top Trump administration officials after ByteDance rejected a bid from Microsoft Corp. and Walmart to buy the U.S. TikTok service outright.Beijing has signaled it would greenlight a deal as long as ByteDance doesn’t have to transfer the artificial intelligence algorithms that drive TikTok’s service, Bloomberg has reported.The Treasury Department said the deal is subject to a security agreement that requires approval by the Committee on Foreign Investment in the U.S., or Cfius. The term sheet that’s been negotiated between Cfius and the companies will now have to be formalized in a document that details the mechanics for implementing the terms of the deal.That document would likely include requirements related to the establishment of the new company, arrangements governing its relationship with ByteDance, whether an IPO is part of the deal, whether ByteDance will have to divest its entire stake in the IPO and what would happen if for some reason the IPO doesn’t occur, said Aimen Mir, a lawyer at Freshfields Bruckhaus Deringer LLP and a former deputy assistant secretary for investment security at Treasury.In a video posted on TikTok with the caption WeAreTikTok and we are here to stay, interim head of TikTok Vanessa Pappas thanked users for “sticking by us,” she said. “We’re here for the long run.” In the comments below, users said they were happy that the ongoing drama around the ban would subside. “This on and off situation is working on my nerves,” said @iamdavante, who has 4.1 million followers on the video app.(Updates with possible TikTok valuation in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Oracle Corp.’s deal to attain a 12.5% stake in TikTok Global and provide computing services to the video-sharing app furthers the software maker’s years-long plan to become a cloud computing heavyweight.Executive Chairman Larry Ellison leaned on his company’s close ties to the Trump administration to land the partnership with the newly formed company, which will help fulfill an ambitious strategy outlined with fanfare half a decade ago to become a credible cloud rival to Amazon.com Inc. and Microsoft Corp.Retailer Walmart Inc. will buy as much as 7.5% of TikTok Global, which will be headquartered in the U.S. and pursue a public listing in less than a year, the companies announced Saturday in a statement.While other Silicon Valley giants have kept U.S. President Donald Trump at arm’s length, Oracle has embraced him, which may have helped the company gain preliminary U.S. approval for the deal. Ellison spoke directly with the president Friday, two days after Trump said that he “conceptually” didn’t like the TikTok proposal, which would leave computer code and ownership mostly in the hands of its Chinese parent Bytedance Ltd.There’s little to indicate the investment structure of the deal has dramatically changed since then, but Trump nonetheless gave his blessing Saturday. The deal does call for the addition of 25,000 jobs, the creation of a $5 billion education fund, a mostly U.S. led board and several precautions aimed at safeguarding the data of American users.There are very few leaders of Fortune 1000 companies who back Trump and the president is “giving a cloud contract and investment opportunity” to a firm “whose CEO is openly supporting him,” said Scott Galloway, a professor of marketing at New York University. “The only way I would describe the proposed agreement is strange and a giant step backward for the government’s approach to capitalism.”Much-Needed WinThe administration’s assent gives the Redwood City, California-based company a desperately needed win. Oracle, the world’s second-largest software maker after Microsoft, has struggled to find its footing in the fiercely competitive public-cloud market. In 2019, Oracle’s share of the cloud infrastructure market was so small that Gartner lumped it into an “Others” category of niche players.“For Ellison and Oracle this is a strategic win on the infrastructure/cloud front by inking this partnership and should competitively help its efforts within the Beltway going forward,” Dan Ives, an analyst at Wedbush Securities, wrote in a note. “A TikTok technology partnership is a symbolic shot in the arm and could have positive financial ripple impacts.”Ellison’s courtship of the president predates this business opportunity. In February, the Oracle co-founder, who is the world’s ninth-wealthiest man, let Trump use one of his California estates to host a political fund-raiser. Not long after, he offered his company’s help in building a database to track the effects of hydroxychloroquine, which the president said was a treatment for Covid-19. The anti-malaria drug proved ineffective.Trump has expressed his admiration for Ellison on more than one occasion, calling him a “tremendous person” in August and saying Oracle was a “great company.””I have a high respect for Larry Ellison,” the president said earlier this month. “He’s somebody I know. He’s been really a terrific guy for a long time.”Oracle Chief Executive Officer Safra Catz supported Trump since before his administration began, visiting him in Trump Tower after the 2016 election, serving on his transition committee and dining with him at the White House. Most recently, Catz personally donated more than $125,000 to the president’s re-election bid this year.Pentagon ContractLast year, Oracle missed out on a deal to provide cloud services to the U.S. Department of Defense. Catz told Trump at a 2018 dinner that the process was unfair and designed to favor Amazon, Bloomberg reported. Amazon had been widely expected to win the contract, but Microsoft instead prevailed. Amazon sued the U.S. government, alleging that Trump unfairly interfered in the process.Oracle Loses Appeal in $10 Billion Pentagon Contract FightThe Pentagon deal, valued at $10 billion over a decade, could have helped Oracle catch up to rivals. For more than half a decade, the company has promised to become a cloud powerhouse, with Ellison in 2014 saying that year would be an “inflection point” in its cloud advancement.Oracle’s heritage is producing essential databases that help businesses process transactions -- high-priced technology that was stored in client’s own server farms. The company waited too long to make databases and applications accessible over the internet, and its attempts to provide web-based computing and storage have flailed in the face of more mature offerings from Amazon Web Services and Microsoft.The company’s cloud efforts fizzled last year, when it trimmed the workforce in Seattle offices that are focused on the public cloud. Oracle has said that it is moving full steam ahead, hiring staff for other roles and broadening a network of data centers in regions around the world.Oracle made headlines during the coronavirus pandemic when it announced a deal with Zoom Video Communications Inc. to help the video-conferencing company cope with a surge of usage while businesses and schools operated remotely.In the cloud services market, Oracle has touted its aggressive pricing, to be a more affordable option than AWS. That means that its contract with Zoom, which maintains data centers and an AWS partnership, isn’t a cash cow for Oracle.Instead of padding revenue, Zoom, and likely TikTok, will fill space in Oracle’s larger network of servers and be proof points in Ellison’s marketing efforts. The billionaire already touts the Zoom deal during every public statement, to demonstrate to prospective clients and the market that its cloud helps underpin a vibrant service that hundreds of millions of people rely on.TikTok CoupEllison framed TikTok as a coup for Oracle in a statement Saturday, and said that its cloud service has high customer satisfaction.“TikTok picked Oracle’s new Generation 2 Cloud infrastructure because it’s much faster, more reliable, and more secure than the first generation technology currently offered by all the other major cloud providers,” he said.Oracle said that TikTok was “heavily influenced” by Zoom’s decision. It also pointed to a long history of securing sensitive data. The company’s first client was the U.S. Central Intelligence Agency and it is now responsible for safeguarding TikTok’s user data from foreign manipulation. Oracle says that its technology will find any backdoors in TikTok’s code.Michael Coates, the CEO of Altitude Networks and former chief information security officer at Twitter Inc., said that’s easier said than done.“With the speed of development and iteration for a social media platform of that scale, it’s infeasible that they would be able to detect a maliciously planted back door to siphon off data if a clever developer put their mind to it,” he said.Being TikTok’s “secure cloud technology provider” won’t be easy because of the complexity of hosting a bandwidth-intensive video-sharing app and lingering security concerns. But Oracle is on the lookout for more anchor tenants.To succeed, it will need to support more than just two social networks, as large as they are. The company will also need to get some of its big legacy clients to bring their workloads to the cloud, which has so far proven to be a tough task.In the meantime, Ellison, who like Trump has a braggadocious demeanor in business, will have two successes to point to, while the president can argue he’s helping to create more American jobs and is making TikTok a U.S. company.The men, both billionaires known for their love of deals, finally pulled one off together.Ellison has said that he is a “dispassionate” political centrist rather than a fervent ideologue. Before the pandemic-fueled recession, he said in a 2018 interview with Fox Business that he appreciated Trump’s economic accomplishments.“I don’t think he’s the devil,” Ellison said about Trump in a Forbes interview earlier this year. “I support him and want him to do well.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.