TikTok planning to shut down in US on Sunday: reports

Published On Jan 16, 2025, 4:15 PM

Reports indicate that TikTok is set to shut down its services in the U.S. on Sunday, unless there is an unexpected sale of the company or intervention by the Supreme Court. A law passed by Congress last year mandates TikTok's parent company, ByteDance, to divest the app or face a ban. Current plans suggest that access will be cut off, with users directed to a website explaining the ban. There is speculation about future actions by President-elect Trump regarding TikTok and potential executive orders to delay the shutdown.

Stock Forecasts

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The potential shutdown of TikTok in the U.S. could significantly impact the social media landscape, leading users to alternative platforms. Companies that are already benefiting from TikTok's potential demise might see increased user engagement and revenue. Investors might want to keep an eye on companies that are emerging as competitors or those associated with TikTok alternatives.

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Negative

Conversely, the ban on TikTok may negatively affect businesses that rely on advertising revenue from the platform, primarily advertisers that have invested heavily in TikTok marketing. This showcases the volatility and risk in investments tied to platforms with unstable regulatory status.

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