Snap Stock Pops on Possible Competition Ban

TikTok could split from its Chinese owner if the White House's proposal fails

Jake Scott

Deputy Editor

Mar 16, 2023 at 9:05 AM

SNAP

Shares of Snapchat-parent Snap Inc (NYSE:SNAP) are rallying before the open, last seen up 6.1% after the White House said competitor TikTok could be banned in the U.S. if Chinese owner ByteDance doesn't divest its stake.

The move comes as some Republicans accuse the Biden administration of not taking a hard stance on the perceived security risk from the Beijing-based video-sharing app. Per the The Wall Street Journal, however, TikTok said the Committee on Foreign Investment in the U.S.'s forced sale wouldn't address the perceived threat. Separately, Bloomberg reported that TikTok is mulling over a split from ByteDance if the proposition fails.

Down 65% in the last 12 months, SNAP boasts a modest 15.5% year-to-date lead heading into today. It will probably take more days like today though for the 29 brokerages with "hold" ratings to shift their tune. Since late January, the shares have traded in a tight range between $10 and $12.

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