The Clap
Snap (NYSE: SNAP) and Meta (NASDAQ: META) both saw their stock increase by around 3% and 2% respectively, following a statement that the US should ban TikTok.
The Deets
The Committee on Foreign Investment in the U.S (CFIUS) is studying the potential risks to national security that TikTok poses, seeing as though it is owned by ByteDance, a Chinese company.
Both Trump and Biden put TikTok under the spotlight, investigating the company’s relationship with ByteDance.
TikTok claims to store information obtained through the app outside of China, but the US have their doubts.
So What
A TikTok ban would significantly boost social media giants, due to the company’s large popularity globally.
Now What
The statement does not indicate that there are any legal actions pending against TikTok.
