Why Trump saving TikTok isn't so legally simple
Published On Jan 16, 2025, 5:09 PM
President-elect Donald Trump is considering executive actions to delay the enforcement of a TikTok ban in the U.S., which is scheduled to take effect unless halted by the Supreme Court. Legal experts indicate that while Trump may seek to suspend the enforcement for 60 to 90 days, this approach might contradict federal law and could face significant legal challenges. Options for Trump include lobbying Congress to reverse the law, negotiating a sale of TikTok's U.S. operations to a non-foreign adversary, with potential interest from Elon Musk, or asserting constitutional challenges against the law itself.
Stock Forecasts
GOOGL
Positive
If Trump successfully implements measures to delay the ban on TikTok, it could ease concerns regarding TikTok's future in the U.S. market, positively impacting stock valuations linked to TikTok's parent company, ByteDance, and technology companies that advertise on the platform.
SNAP
Negative
If the ban is enforced, it could adversely affect revenues across tech platforms relying on TikTok for advertising, leading to negative impacts on stocks like Snap Inc. and companies closely associated with social media advertising.
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