SNAP - 3 Stocks That Could Soar if TikTok Is Banned
2024-05-09 05:25:00 ET
The clock is ticking on a TikTok ban. Last month, President Joe Biden signed a bill that would ban video-sharing social media app TikTok if its Chinese parent company, ByteDance, doesn't sell it within 270 days (with a possible additional three months if a sale is in progress). The concern for U.S. officials is that the Chinese government might have access to American users' data on TikTok and that it poses a potential security risk.
ByteDance has said it won't sell and on Tuesday it sued the government, challenging the legislation on First Amendment grounds. This lawsuit will spark what is expected to be a lengthy legal battle that pits national security concerns against free speech protections for the company and its millions of U.S. users.
If the government prevails in court and the popular social media platform is no longer available in the U.S., that could effectively remove a big competitor for several other companies. Three social media stocks that could benefit the most from a TikTok ban are Meta Platforms (NASDAQ: META) , Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) , and Snap (NYSE: SNAP) . Here's why.
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3 Stocks That Could Soar if TikTok Is Banned