Shares of Amazon (AMZN -2.61%) are climbing on Wednesday. The company's stock gained 2.6% as of 1:30 p.m. ET and as much as 3.2% earlier in the day. The gain comes as the S&P 500 (^GSPC -1.57%) and Nasdaq Composite (^IXIC -2.15%) were up 0.9% and 1.3%, respectively.
The tech behemoth has reportedly made a last-minute offer to acquire the popular short-form video app TikTok.
NASDAQ: AMZN
Key Data Points
A surprise bid for TikTok
Amazon has submitted a last-minute offer to buy all of TikTok, according to the New York Times. The company has reportedly sent an offer letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, just days before the April 5 deadline for TikTok to find a non-Chinese buyer or face a ban in the United States.
President Donald Trump was already expected to consider a final related proposal from another buyer. The unexpected move from Amazon sent shares higher.
An ongoing Saga
The future of TikTok has been in flux ever since a 2024 law was passed with strong bipartisan support, requiring ByteDance -- its Chinese owner with ties to China's ruling CCP party -- to divest the app by Jan. 19. President Trump signed an executive order soon after being sworn in giving the app an extension. That ends April 5.
If Amazon were to take the reins, it could be a boon for the company's bottom line. Without knowing specifics of the deal, however, it's impossible to quantify how much.
Regardless of the outcome, however, the company remains in a strong position, and with its stock trading at a relatively low price-to-earnings ratio (P/E), Amazon is a solid pick.
