Meta and Snap: Potential for tremendous market gains >>> sharedeals.de

News is mounting in the US that there could be a possible US government ban on social media app TikTok. Stocks of social media services Meta (NASDAQ:MTA) and Snap (NASDAQ:SNAP) have responded extremely positively. Will both titles be big beneficiaries of the ban?

Meta Platform Inc., Meta for short, emerged from the Facebook group. In addition to operating social media platforms such as Facebook or WhatsApp, the future focus will be on building the metaverse. The market capitalization is around US$ 530 billion.

SnapChat is also a US provider of technology and social media services. For example, the company develops mobile camera applications that users can use to send and receive photos, videos and drawings. The company is currently valued at $17.5 billion on the stock exchange.

TikTok before the end

After there had always been very negative news for the company about the waves of layoffs at Meta, there is now an extremely positive development – of all places in Washington DC, which is rather critical of Meta. According to media reports, the US government is actually considering banning the social media app TikTok, which has stolen numerous users from Snap and Meta’s subsidiary Instagram in recent years.

TikTok, which is operated by the Chinese company ByteDance, has long been criticized. On the one hand, educators in particular fear the high dependency rate, which is increasingly turning the younger generation into digital “zombies”. On the other hand, there are also concerns about the content. Some government investigations have raised questions about what kind of content is offered to American users by the Chinese-controlled company.

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ban on the way

Last week, Senate Intelligence Committee Chairman Mark Warner introduced bipartisan legislation aimed at monitoring technology threats from “adversarial” nations — a move that hinted at a possible ban on TikTok.

However, the biggest beneficiaries of this development are probably not the American youth, but Snap and Meta. Both companies have ceded the crown of the social media world with Snapchat and Instagram and could now be back at the top as they too leverage the almost addictive shorts/reels format.

New rally for both stocks

The current developments surrounding the TikTok ban have also already led to a price jump for US competitors: Meta rose by +3.6% to US$204.93, while Snap shareholders celebrated even more and the stock fell to 11 US$.10 sent, a gain of +7.2%.

So far, however, there have only been indications of a possible ban. Should such a thing actually happen in the USA, which is by no means improbable given the current political and ideological situation, then there could be another significant rally for both stocks and fuel the current upward trend, especially for Meta.

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