- A TikTok ban is sure to occur finally, based on Deepwater’s Gene Munster.
- He pointed to Thursday’s congressional listening to, the place policymakers grilled TikTok’s CEO.
A US TikTok ban is only a matter of time, and that spells hassle for US shares, based on Deepwater Asset Administration’s Gene Munster.
In an interview with CNBC, he pointed to the congressional listening to on Thursday, when TikTok CEO Shou Chew argued towards a possible ban on the China-based short-form video app or a compelled sale within the US .
Munster predicted the Biden administration may enable TikTok to remain this yr, with a view to quell escalating tensions between the US and China. However as soon as among the political hearth dies down, a ban might be inevitable, he mentioned, pointing to policymakers’ heated questioning on the listening to, which concerned intense criticism of the app.
When requested if US firms that function in China face retaliation danger, he replied, “Tesla and Apple and Nike — they’re all pinned to this 5 and half hours of hearings right this moment.”
TikTok has been caught up within the broader nationwide safety debate about Chinese language firms and has confronted rising scrutiny within the US on issues that it may spy on its American customers.
Commentators say that Chew’s look earlier than Congress this week seemingly failed to assuage policymakers concerning TikTok’s privateness insurance policies, with Wedbush analyst Dan Ives calling the listening to a “catastrophe.”
“The truth is that is a lot greater than TikTok. That is about US-China relations, and a banning of TikTok goes to be destructive for US-China relations. I feel it is going to intensify among the separation that is there,” Munster mentioned.
And whereas a TikTok ban initially looks like a constructive for US rivals like Meta’s Reels, the Home committee confirmed a big concern over the app’s addictiveness and its penalties on teen psychological well being.
“This isn’t simply all good for Meta both,” Munster mentioned, estimating a ten% quick upside to the TikTok competitor earlier than it may additionally see headwinds. “When TikTok will get banned I feel Meta will come again into the highlight and need to reply the identical questions that TikTok was requested.”