Snap (NYSE:SNAP) stock is on the move Thursday as talk of a TikTok ban rekindles interest in the social media app.
Insiders claim that President Joe Biden and his administration are considering banning TikTok as it represents a security threat to the United States. If that happens, other social media services like Snap could benefit from the ban.
To avoid the ban, the Biden Administration is requiring ByteDance, a major Chinese tech company, to divest its stake in TikTok. However, ByteDance argues that a change of ownership wouldn’t alter the potential security threats the government is arguing against.
The Battle Against TikTok
Concerns about the influence that TikTok has over social media have been growing for years now. Former President Donald Trump tried to ban the app as well via an executive order, but it was challenged in court.
What’s different this time around is a new bill that could help ban TikTok in the United States. That bill is currently in the Senate and would grant the Biden Administration the power to ban the app.
It’s not just the U.S. that’s taking a stance against TikTok, either. The U.K. is also coming down on the Chinese video-sharing app with a new ban. This makes it so the app is no longer allowed on government devices.
Investors in SNAP stock will want to keep an eye on the recent TikTok news considering how it could affect shares. For example, the stock is already up 3.8% on Thursday morning without a ban even in place.
Investors looking for more of the latest stock market news will want to stick around!
We’ve got all of the hottest stock market coverage traders need to know about on Thursday! That includes why shares of Blink Charging (NASDAQ:BLNK) are moving, the latest on the March Consumer Sentiment Index and more. You can get up to speed on these matters at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.