Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Investors What to do if Trump Bans TikTok

Companies / Corporate News Aug 05, 2020 - 06:30 PM GMT

By: John_Mauldin

Companies

By Justin Spittler : It’s the hottest social media platform on the planet. It’s growing faster than Facebook (FB)Twitter (TWTR), and Instagram. And it could come crashing down any day now.

Of course, I’m talking about TikTok. You may have heard of TikTok. You may even have a teenager suddenly singing and dancing around the house because of it.

In short, TikTok is a video sharing app where users can create short dance, lip-sync, comedy, and talent videos.


And Right Now, Millions Of Young Americans Are Hooked

In the first quarter of 2020, there was a total of 315 million downloads worldwide—a 58% increase from the previous quarter and the most to date. Currently, TikTok has 800 million users worldwide, and an estimated 80 million users in the US.

And get this: TikTok has only been available in the US since 2018! These days, young people in the US now spend almost as much time on TikTok as they do watching videos on YouTube.

But as I said, this addictive app could soon be gone for good. You see, not only is it insanely popular, It’s also highly controversial. In fact, Trump and his administration are looking into banning it. Not months from now, but weeks.

And when he does, it could send one specific stock to the moon. Let me explain.

TikTok Isn’t An American Company

It’s owned by the Chinese parent company ByteDance which, thanks to TikTok, is worth a whopping $75 billion. It’s the world’s most valuable private company, according to CB Insights. When companies get this big, they attract criticism, especially Chinese companies.

You see, it’s no secret that the US government and China aren’t on the best terms. Trump’s been waging a trade war on China since he stepped into the Oval Office.

The Chinese Communist Party is also infamous for stealing intellectual property. And, as a social media app, TikTok has mountains of personal data to collect on its users.

Now, TikTok Is Doing Everything It Can To Distance Itself From The Chinese Government

In May, it hired American and former Disney executive Kevin Mayer as CEO. It also says it’s “never provided user data to the Chinese government, nor would we do so if asked.”

Still, many cybersecurity experts fear that the private data of American users could end up in the hands of China’s Communist Party. There are even reports that TikTok can read anything and everything on users’ Apple (AAPL) iPhone devices. That includes passwords, work documents, sensitive emails, and financial information!

Wells Fargo (WFC)—one of the nation’s biggest banks—has banned its employees from using it. The US Army and Navy have also barred service members from using the app on government phones, after the Pentagon issued a warning.

Earlier This Month, Trump Called Out TikTok By Name

He said his administration is now considering banning the app. That same week, US Secretary of State Mike Pompeo called TikTok a “national security” threat.

Pompeo also said that the administration was “certainly looking at” banning the app. And the Trump administration is now running ad campaigns asking for support of a TikTok ban.

Now, it’s too early to tell if Trump will ban TikTok outright. But it wouldn’t surprise me at all if he does.

The White House has already said that restrictions on TikTok could come in “weeks, not months.” The US wouldn’t even be the first country to ban TikTok.

Last month, India banned TikTok along with 59 other Chinese apps due to an ongoing border clash with China. India was an even bigger TikTok market than the US. It accounted for 30% of all TikTok downloads!

If Trump Does Clamp Down On TikTok, That Will Cause One US Stock To Soar

I’m talking about Snap (SNAP). Snap is the biggest US social media company after Facebook. It owns the wildly popular app, Snapchat.

Like TikTok, Snapchat is a hit with the kids. About 90% of 13- to 24-year-olds in the US use Snapchat. To put that in perspective, just 39% of young folks use Facebook.

Snap is also at the forefront of the augmented reality (AR) megatrend. Snap could explode higher if Trump bans TikTok. And I’m clearly not the only investor who thinks so. On July 8, Snap spiked 6% on talk of a TikTok ban.

To be fair, Snap isn’t the exact same experience as TikTok. But it could offer something eerily similar soon. You see, Snapchat is currently recreating the TikTok experience on its platform. According to TechCrunch, Snapchat has begun experimenting with a vertical swiping motion that mimics how TikTok works.

This tells me Snapchat is looking to fill the huge void that will come from a TikTok ban. But that’s not the only reason for you to consider investing in SNAP. The stock is also emerging from a monster base that it’s been carving out since it went public three years ago.

It’s now close to eclipsing its IPO-day high. A breakout at this key level would represent a massive change in character for the stock. And it could signal the beginning of a major long-term rally for SNAP.

In closing, SNAP looks like it’s on the cusp of a major move higher. And a TikTok ban by Trump could be the catalyst that sends this stock through the roof.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get our latest report where we reveal our three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Justin Spittler

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules