How TikTok Evaded a Ban Again and Again, Until Now

Published On Jan 17, 2025, 5:01 PM

TikTok is set to be banned in the United States starting Sunday after the Supreme Court upheld a law requiring the app's Chinese owner, ByteDance, to sell the platform to a non-Chinese company. Despite previous successful defenses against such bans, TikTok executives failed to recognize the looming regulatory threat, leading to a significant shift in its operational landscape. The ban is expected to impact TikTok's 170 million U.S. users and concludes a turbulent phase of survival against political pressure.

Stock Forecasts

BIDU

Negative

The ruling is likely to lead to a decline in TikTok's usage among U.S. consumers, resulting in a negative long-term outlook for ByteDance, which operates TikTok. This may also affect associated tech stocks reliant on TikTok's platform for advertising revenue.

META

Positive

As TikTok's ban becomes a reality, Facebook's parent company, Meta, could see an increase in user engagement on its platforms, as users seek alternative avenues for short-form video content.

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