Oracle stock price erases gains after failing at $60
- Oracle entered into a technical partnership with ByteDance, following Trump’s ban
- A judge has temporarily blocked Trump’s order to ban Apple and Google from including TikTok in its digital sto
- Oracle stock price slipped lower to close at $59.58, or 0.37% in the red on the day
Shares of Oracle (NYSE: ORCL) closed the day 0.37% in the red despite trading nearly 2% higher during yesterday’s trading session. The buyers failed to keep their heads above the $60 mark, which resulted in a selloff.
Fundamental analysis: Judge blocks Trump’s TikTok ban
A U.S. court judge has temporarily blocked Trump’s order to ban Apple and Google from including TikTok in AppStore and Play Store. At the demand of ByteDance, the company that owns TikTok app, the judge granted the preliminary injunction.
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As a result, the court decision blocks restrictions set to come into force on November 12 on technical and business agreements that are essential for TikTok to operate properly.
Oracle entered into a technical partnership with ByteDance, which also includes the purchase of a 12.5% stake in the new company – TikTok Global. An additional stake of 7.5% would be acquired by Walmart.
Following the court ruling, the U.S. Commerce Department said it “will comply with the injunction and has taken immediate steps to do so.”
ByteDance said it was satisfied with the decision and it will continue “ongoing dialogue with the government to turn our proposal, which the president gave his preliminary approval to last week, into an agreement.”
The company’s lawyer John E. Hall described Trump’s ban was “unprecedented” and “irrational”.
“How does it make sense to impose this app store ban tonight when there are negotiations underway that might make it unnecessary? This is just punitive. This is just a blunt way to whack the company. … There is simply no urgency here,” he said.
Technical analysis: Oracle stock price fails at resistance
Although shares of Oracle briefly traded above the $60.50 mark on Monday, the buyers failed to force a close around these levels. As a result, Oracle stock price slipped lower to close at $59.58, or 0.37% in the red on the day.
Shares are also trading slightly lower at $59.54 in premarket trading today. Sellers are likely to push for the continuation of the short-term bearishness as they eye a move to $57.80. On the other hand, the intraweekly resistance remains at $60.50, which is the previous record high for the stock.
A U.S. judge has provisionally blocked Trump’s order to ban TikTok from U.S. app stores. Oracle stock price gained initially before failing at $60.50 resistance.
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