TikTok US Profit Split, Pharma Tariffs, and Boeing's Regulatory Gains

TikTok US Operations and Profit Sharing

• 💡 Under a potential deal orchestrated by President Trump, ByteDance is expected to receive about 50% of TikTok's US profit.
• 🎯 This arrangement stems from ByteDance retaining operational control of the US business, including running ads and e-commerce, due to its expertise.
• 💰 The estimated valuation for TikTok's US business is around $14 billion, significantly lower than previous estimates, reflecting the complexities and costs involved.
• 🧩 Oracle is mentioned as a potential infrastructure provider, with its previous revenue from TikTok converting to a cost, impacting the asset's valuation.

Pharmaceutical Tariffs and Innovation Concerns

• ⚠️ President Trump's plan to impose a 100% tariff on branded drug imports has been met with investor skepticism.
• 📈 Many pharmaceutical companies have pledged significant US manufacturing investments, potentially softening the blow of the tariffs.
• 🔬 There is confusion within the research community regarding the impact of restricted funding for universities and visa issues on the development of new drugs and therapies.
• ❓ Concerns are raised about whether the US remains a supportive environment for scientific innovation due to these policies.

Boeing's Regulatory Approvals and Production Outlook

• ✅ Boeing is set to regain powers from regulators to conduct final safety checks and issue airworthiness certificates for some 737 Max and 787 jets, effective September 29th.
• 🚀 This regulatory gain is crucial for lifting production caps and enabling Boeing to increase build rates in the coming year, a key part of its turnaround strategy.
• 📊 Deliveries are a mix of existing inventory and new production, with Boeing actively working to deplete its 'shadow factory' inventory.
• 📈 Investors are looking for targets for 2026 build rates and cash generation during the upcoming earnings call, with positive signs emerging in both the commercial and defense sectors.
• 🛠️ The labor market is improving for companies, potentially leading to greater workforce stability for Boeing and its suppliers, though supply chain backfill remains a concern.