Stock Movers: Oracle Rallies on TikTok Deal, Nike Falls on Weak Guidance

Nike's Sales Decline and Brand Weakness

• 📉 Nike (NKE) shares dropped significantly due to a warning that sales will decline this quarter, citing weakness in China and the Converse brand.
• 👟 Converse sales specifically plunged 30% in the latest quarter, indicating a loss of popularity for products like Chuck Taylors.
• 📊 Nike expects revenue to be down in the low single digits for the current quarter, with gross margins shrinking due to tariffs.
• 📈 While the North America running category is performing well, investors are concerned about performance in other areas, contributing to the stock's decline for the year.

FedEx Faces Cost Headwinds and Market Pressures

• 🚚 FedEx (FDX) saw its shares edge lower despite raising its FY targets, as cost headwinds impacted results.
• ✈️ The grounding of its MD-11 planes is expected to cause a $600 million hit to adjusted earnings in the second half of the year.
• 📦 Weakness in the less-than-truckload freight market and trade tariff policies have also affected the company.
• 🌐 FedEx is attempting to combine its ground and air operations to slash costs, but faces increasing competition, including from Amazon's logistics.

Oracle Leads TikTok Joint Venture Deal

• 🤝 Oracle (ORCL) shares rallied as it leads a group of investors in a joint venture to take control of TikTok's US operations.
• 📱 This move comes as TikTok's Chinese parent company, ByteDance, faces pressure from the White House to split its US operations.
• 💼 The joint venture will be majority-owned by American investors, with Silver Lake Management and MGX also listed as partners.
• 🗓️ The deal is expected to close on January 22, 2026, though further work is required, and Chinese regulatory approval is still pending.
• ❓ Questions remain about whether China is licensing the algorithm, which is considered the core value of TikTok, rather than selling it outright.
• 📈 Analysts see this as a positive development for Oracle, offering potential long-term upside and improving its standing with the current administration.