tiktok | The three US tech giants, Alphabet, Meta and Snap, could gain about $431 billion in market capitalization if the US bans TikTok, according to an analysis published Thursday, March 23.
Alphabet, Meta and Snap groups, which each operate short-lived video platforms that rival TikTok, would benefit from big stock market hikes if the US bans TikTok, according to a note to clients from Bernstein analysts led by Mark Schmulek.
Actions YouTube Shorts (alphabet) can jumps up to 20% If users Tik Tok They had to resort to a workaround for their dose of social networking, actionsInstagram (meta) can record a file earn 30% And business Snapchat Spotlight (snap) can jump up 50%according to Bernstein’s forecast, which relies on multiple price earnings data for companies that benefited from similar earlier bans in China and India.
These gains represent the relevant increases of 267 billion dollarsAnd $155 billion And $9 billion Alphabet, Meta and Snap’s market capitalization compared to Wednesday’s prices.
All three titles had already benefited Thursday from the fact that the CEO of TikTok and China rejected the hypothesis of a forced sale of TikTok by its Chinese parent company. Byte Dance and that the TikTok CEO testified before Congress to defend his company amid national security and information privacy concerns. Snap, Meta, and Alphabet shares rose 2-3%, almost a jump $40 billion The market value of the trio.
He wrote that Snap and Meta would be the “obvious beneficiaries” of the TikTok ban Dan Ivesthe analyst at Wedbush, in a note dated Wednesday, also predicted that such a ban would have widespread effects across the technology sector, “dramatically increasing tensions between the United States and China with Cold War technology being brewed in the software and chip ecosystem.” .
Who gained? says Bernstein’s analysis of the three companies that stand to benefit most from a TikTok ban. Meta is best positioned to gain market share in the short video segment thanks to strong reliance on Reels. Snapchat is expected to show “the largest relative increase in time lapsed.” Analysts noted that YouTube gained popularity in 2020 after the ban on TikTok in the United States.
The Biden administration has demanded that ByteDance sell TikTok or ban the app across the country, according to multiple reports last week. The social network has come under intense scrutiny over concerns that the Chinese government could access data collected by the increasingly popular app. investigations conducted by him Forbes Over the past few months, it was revealed that ByteDance was using TikTok to spy on US citizens, including journalists from Forbes, actions that are currently under investigation by the FBI and the US Department of Justice. India banned TikTok in June 2020 to “ensure the security and sovereignty of Indian cyberspace”, citing data privacy concerns for individuals. Last month, the US banned downloads of TikTok on government devices. Fighting a congressional law that would give the Biden government power to block certain foreign technologies, TikTok insists that US data was never shared with the Chinese government and promises to store US user data in US servers.
Instagram Reels and YouTube Shorts both gained popularity in India immediately after TikTok was banned, while new apps seeking to replicate TikTok’s format have also gained millions of users. However, ByteDance has access to a large amount of personal data of former Indian TikTok users, according to an employee of the social network. Forbes.
Translated article from the American magazine Forbes – Author: Derek Saul
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