TikTok scrutiny could be bad news for U.S. companies, Fast Money traders say
Potential authorities motion towards Chinese language social media big TikTok might end in backlash that damages U.S. firms, in response to merchants and visitors on CNBC’s ” Quick Cash .” TikTok CEO Shou Zi Chew testified earlier than Congress on Thursday, taking warmth from each side of the aisle. Many members of Congress have known as for TikTok to be both banned within the U.S. or for some kind of sale of the corporate that will wall off American person information. A ban of TikTok may very well be a lift, at the least within the short-term, to its social media opponents within the U.S., however the repercussions from China might harm U.S. firms long run, in response to Seymour Asset Administration CIO Tim Seymour on “Quick Cash.” Shortly earlier than the TikTok listening to, a China Ministry of Commerce spokesperson mentioned the nation would “resolutely oppose” a pressured sale, the Related Press reported. “The Chinese language authorities has spoken for the primary time on this, and it is not fairly,” Seymour mentioned. Man Adami, director of advisor advocacy at Personal Advisor Group, mentioned the potential blowback from China was the primary factor he was searching for after the listening to. “It hasn’t occurred but, and I hope it does not occur. However the firms within the crosshairs are clearly names like Starbucks , McDonald’s , and Apple ‘s on the high of that record. And I do not suppose that danger has been priced in practically considerably sufficient,” Adami mentioned. And authorities motion towards TikTok may very well be a long-term menace to U.S. social shares like Meta Platforms , even when a ban creates a short-term bump, Deepwater Asset Administration’s Gene Munster mentioned. “This isn’t simply all good for Meta both. As you watch this, you see there’s a large concern in regards to the addictive points of quick format video and social media. That is Reels as effectively. I believe that whereas this appears to be a transparent profit within the close to time period, which I do not suppose is priced in, we will see modifications,” Munster mentioned.