Snap (NYSE: SNAP) stock jumped 5% in intraday trading Wednesday in response to reports indicating that the proposed bill, which could compel TikTok to divest from ByteDance (BDNCE) or risk a U.S. ban, may get fast-tracked.
House Speaker Mike Johnson (R-LA) is reportedly planning to include the TikTok bill in a fast-track legislative package that also encompasses aid for Ukraine and Israel, as per a report by Bloomberg on Wednesday.
The TikTok bill, which gained significant bipartisan support, passed the U.S. House of Representatives in March. If enacted into law, it would mandate TikTok to divest from its parent company ByteDance within six months. This move aims to address concerns regarding national security and data privacy associated with the popular social media platform.
While Meta (NASDAQ: META) and Google (NASDAQ: GOOG) (NASDAQ: GOOGL) are perceived as potential beneficiaries if the TikTok bill materializes, market reactions have been mixed. Meta stock declined 0.5%, while Google observed a modest uptick of 1% following the news.
TD Cowen analysts suggest that a ban on TikTok in the U.S. could lead to increased engagement for Meta’s Instagram Reels and YouTube Shorts.
Snap (NYSE: SNAP) Stock Price Action
At the time of publication, SNAP stock has reached $10.90, indicating a 4.71% increase compared to the previous trading session. Traders have exchanged 54,092,721 (54.09 million) shares, surpassing the average daily trading volume of 29.72 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
