Snap's stock soars as U.S. lawmakers push the revised TikTok ban bill. As of writing, ByteDance's social media app could be banned from the United States.
As the TikTok issue worsens, experts believe the new bill could greatly benefit other social media platforms, such as Snapchat. But should you invest in Snap's shares?
Snap Stock Soars as US Lawmakers Push TikTok Ban Bill
On Wednesday, Apr. 17, Snap's shares increased by 4.7% . This is quite different from the 0.6% decrease of the S&P 500 index. The stock increase happened after market players traded up the social media giant's stock, as reported by Yahoo Finance.
This is not the first time Snap's stocks have soared because of the mounting scrutiny of TikTok. In 2023, CNN Business reported that the stocks of Snapchat's parent company surged almost 10% in March.
During the same month, Snap's shares soared by another 5%. Analysts explained that the social media firm's stocks are soaring because of the possibility of a nationwide TikTok ban.
Should You Invest in Snap?
As of press time, US officials are moving faster and closer to enacting the revised bill that would ban TikTok across the country. This is a sign that you should invest in Snap since once TikTok is banned, analysts predict that shares of Facebook, Instagram, X (formerly called Twitter), and other social media platforms will surge.
However, it is important to take into account that the TikTok ban could be avoided if ByteDance sells its ownership of the app. If the law is enacted, then the social media giant will only have 165 days to do this.
Although the bill isn't official yet, you can still invest in Snap's shares and other stocks of TikTok's rivals. However, to avoid disappointment, it would be best not to spend too much money when investing.
Join the Conversation