Snapchat Stock Surges as Federal TikTok Ban Continues to Loom – Digital Music News

Photo Credit: ThoroughlyReviewed / CC by 2.0Snapchat stock rose 9.5% this week as a federal TikTok ban looms.Snap Inc. shares surged 9.5% on Monday following the news that US Senate Intelligence Committee Chairman Mark Warner plans to introduce a bill this week to allow the US to ban TikTok and other Chinese-based technology companies. Other platforms like YouTube are expected to take home the lion’s share of the gains if the US government should implement a federal TikTok ban — but a rise in Snap stock shows the company performing better than anticipated. Comparatively, Pinterest, which competes with Snap for digital ads, gained 1.1%, while Meta Platforms fell 0.2%. Snap stock had taken a beating from a rise in competition in short-form video platforms and the dark clouds hanging over the digital ad market. Wall Street analysts have speculated that rivals such as YouTube or Facebook could benefit more from a potential TikTok ban — mainly as Snap had fallen 75% since the end of 2021, compared with a drop of 45% for Facebook parent Meta Platforms and 27% for Pinterest.YouTube might gain the most user market share among social media platforms if US lawmakers move ahead with a federal TikTok ban. Bloomberg
Read More