Snap, Pinterest and Meta Stocks Surge as U.K. Moves to Block TikTok
Snap, Pinterest and Meta Stocks Surge as U.K. Moves to Block TikTok
U.S. Puts TikTok on Official Notice Says ByteDance Spokesperson
Snap, Pinterest and Meta Platforms recorded healthy gains on Thursday in Wall Street trading thanks to growing regulatory pressure on TikTok, the viral Chinese social media app. The United States is renewing its push to force ByteDance—the app’s owner—to divest from its US-facing asset or be banned. A spokesperson for TikTok, on Wednesday, said that President Biden’s administration gave the company the ultimatum in recent weeks, although a specific deadline was not provided.
This comes after years of growing national security concerns and at a time when relations between Washington and Beijing are degrading. The Trump administration attempted to ban TikTok but was unsuccessful in federal court. However, the renewed efforts may prove more successful, especially considering growing bipartisan support to ban TikTok among lawmakers. A bill working its way through Congress would authorize the Secretary of Commerce with broader powers to review and prohibit transactions between the United States and foreign adversaries, such as China. The move makes it more likely that the ban would survive judicial scrutiny.
UK Follows US to Ban TikTok on Government Devices
Now, the United Kingdom is following Washington’s lead. After a security review ordered by the Cabinet Office Ministers, the government is implementing a ban on all government-issued devices. Oliver Dowden, Chancellor of the Duchy of Lancaster, stated in a press release, “Restricting the use of TikTok on Government devices is a prudent and proportionate step following advice from our cyber security experts.”
Regulatory scrutiny against TikTok due to security concerns is permeating Western governments. Along with the U.S. and the U.K., the European Commission, Canada and Belgium have all banned the app from government devices. And, despite efforts by ByteDance to assuage those countries’ concerns, at this point, it seems like the West is moving towards restricting the app completely or forcing a sale of the company to a U.S. company.
Snap Stock Surges Over 7%, Sends Bullish Chart Signal
Snap soared 7.21% to $11.08 on Thursday, bringing its monthly gain north of 9% and nearly reversing an early-month selloff that saw prices fall sharply from the March 07 high at 12.67. That increase put prices firmly above the 50-day Simple Moving Average (SMA), a bullish technical signal that may attract more attention to the stock and potentially lead to an extended rise. The next target for bulls would be that early March high of $12.67.
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