Shares of Snap Inc (NYSE:SNAP) are on the rise on speculation that rival app TikTok could be banned in the US.
On Wednesday, the Biden administration called for TikTok to be sold or spun off from its Chinese parent company ByteDance or be hit with a ban.
It’s unclear how likely such a ban is to come to pass, and, if so, when it would take effect. Even so, Snap stock was up nearly 7% to $11.05 on Thursday.
This comes as the UK on Thursday joined the US, Canada, and the European Union in banning TikTok on government devices.
Snapchat, like TikTok, lets users post and share short-form video content. Instagram, which is owned by Meta, is another competitor. Meta shares had added 1.2% to $200.63.
Meanwhile, Snapchat also launched new parental content controls earlier this week to help prevent children from being exposed to inappropriate material while using the app.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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