A new analysis published has revealed that if TikTok is banned in the USA, there may be a jump in the shares of other technology giants. The analysis came as TikTok CEO Shou Zi Chew testified in the US Congress about skepticism about the platform.
TikTok has been under a lot of pressure lately due to allegations that user data has been transferred to China. So much so that places such as the USA, Canada, the European Union, the United Kingdom and New Zealand banned the use of the popular platform on official phones.
Today, TikTok CEO Shou Zi Chew was summoned to testify in the US Congress on the subject. A report was published today, while the platform is still likely to face a ban in the US. The analysis shared by the Bernstein research firm shows that the possible ban to other tech giants making predictions about its impact.
Alphabet, Snap and Meta stocks could jump if TikTok gets banned in the US
According to Bernstein’s analysis, if TikTok faces a widespread ban in the US, three American tech companies $431 billion can achieve huge market value. These companies also; Google’s umbrella company Alphabetthe umbrella company of Snapchat snaps and the parent company of platforms like Instagram, WhatsApp, and Facebook Meta.
The analysis predicts that if the US continues to make moves against TikTok, there may be big jumps in the shares of these companies. Accordingly, Alphabetin, the owner of YouTube Shorts, a service similar to TikTok, will decide if its shares are banned. 20% may increase. In a similar situation, Reels owns Meta’s 30% of increase if Snap, owner of Snapchat Spotlight service to 50% up to a jump can be seen.
These earnings are also for Alphabet, Meta, and Snap, respectively. $276 billion, $155 billion, and $9 billion It is stated that it will represent increases in market value. All three shares rose 3% as TikTok testified in Congress today. According to Forbes, Bernstein’s analysis is based on data from previous bans in China and India. Let’s add that the data here is all based on Bernstein’s analysis, not any investment advice.
After Governments, Companies Started to Ban TikTok: The First Move Came from the BBC
In addition, Dan Ives, an analyst from investment bank Wedbush, also stated yesterday that the TikTok ban could benefit Snap and Meta. Moreover; emphasized that the ban could have a wide-ranging impact on the technology sector and said that China-USA will increase the tension he had said.
TikTok CEO testifies in US Congress
As we said at the very beginning, Shou Zi Chew, CEO of TikTok, is testifying in the US Congress today about growing suspicions and the possibility of a ban. While the CEO’s statement is still ongoing, officials are criticizing the platform and asking some questions.
Chew stated that they took national security concerns seriously, while saying that TikTok’s parent company ByteDance is not controlled by the Chinese government. And also that they don’t collect and sell more data than other tech giants argued. Saying that they want to be transparent, Chew added that he did not meet with the Chinese government during the CEO process. The 40-year-old CEO continues to answer questions about the platform’s data usage.