The United States Social media companies Snap and Meta saw their stock prices soar on the news that the Federal Communications Commissioner had recommended that the United States government restrict the use of TikTok.
Concerns about the safety of using TikTok are shared across political lines. The Trump and Biden administration have both looked into the company’s ties to its Chinese owner and voiced their worries.
In order to avoid having a hand to hand over information about its American users to the Chinese, TikTok claims to keep that information in a location other than china. However, this claim has been met with skepticism by American authorities.
TikTok spokesperson said in a statement that such views are made independent by the FCC commissioner and have no role in the private discussions with the U.S. government related to TikTok.
In light of ByteDance’s ownership, the Chinese government has requested that United States treasury Department’s committee on foreign investments in the United States (CFIUS) investigate any potential threats to national security posed by the company.
According to the data collected by industry experts, there is a 52% potential rise from current levels. Also, META stock has a Reasonable Purchase consensus score based on ten Holds, three Sell ratings, and 23 Buys. Meanwhile, year to date, the stock has lost 71.9%.
In return to the above statement, the Justice Ministry is spearheading discussions for a new security agreement.
Republican Commissioner Brendan Carr, in an interview, said he doesn’t believe there is a path forward for anything other than a ban.