Investing.com — Stocks Snap Inc . (NYSE:) and Meta Platforms Inc. (NASDAQ: ) fell 2.9% and 2%, respectively, following news that President-elect Donald Trump may issue an executive order temporarily halting implementation of a law requiring the sale or ban of TikTok. The move would delay the implementation of measures that could have benefited Snap and Meta by reducing competition in the social media space.
The Washington Post reported, citing unnamed sources, that Trump is considering suspending the bill to sell or ban TikTok for 60 to 90 days in hopes of securing an early victory in his second term. The law, signed into law by President Joe Biden, requires TikTok’s owner, ByteDance, to give up the app by January 19 or face a ban. The Supreme Court is expected to allow the law to proceed, but Trump’s potential executive order could give the process a “cinematic flourish.”
Trump’s interest in TikTok, expressed on his TikTok account and other platforms, contrasts with his previous attempts to ban the app during his first term as president. Instead, it now appears to be exploring various options to “save TikTok,” which could include unconventional deal-making or legal maneuvering.
The potential delay in implementing the TikTok ban poses a threat to Snap and Meta, as TikTok remains a significant competitor in the social media sector. Uncertainty about TikTok’s future in the US market has caused investors to worry, contributing to the decline in shares of Snap and Meta.
The broader implications of Trump’s potential actions for TikTok’s business and ownership remain uncertain. While some of Trump’s allies have suggested that he alone has the “superior deal-making expertise” to resolve the situation, legal experts have expressed skepticism about the executive order’s effectiveness in overriding legislation passed with bipartisan support.
As the social media landscape continues to evolve, the fate of TikTok in the US is likely to have ongoing ramifications for companies like Snap and Meta. Investors are watching the situation closely as the outcome could significantly affect competitive dynamics within the industry.
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