The TikTok application that belonged to the Chinese company Byte Dance raised many concerns in the United States following the fear that the Chinese government would collect information about American citizens with its help. Last week, the government in the United States published a notice to all authorities that they have 30 days to delete the TikTok application from all the devices they use.
According to Olivia Dalton, the deputy press secretary of the United States: “The Biden administration is focused on the challenges created by several countries, including China, which seek to use technologies and information about American citizens in ways that pose a national risk.” The Foreign Affairs Committee of the United States passed the first step to block Tiktok in a week, and the CEO of Byte Dance will appear in the coming month before the Energy and Commerce Committee of the United States, apparently with the aim of trying to reverse the decision.
The current increase continues the move recorded last Friday, when Snap went up by 5.5% and Meta by about 3.5%. Tiktok is probably the fastest growing social network in recent years with hundreds of millions of users. The company’s threat to the “old” companies is great and it requires them to invest a lot of resources in research and development, when it may be that the best solution is actually from the regulator, and indeed the investors react accordingly.
Snap published its reports for the last quarter of 2022 about a month ago and fell by 3.5% after missing the forecasts on the bottom line and lowering the forecasts for the rest. The company reported a GAAP loss of about 18 cents, despite market expectations that it would lose “only” 11 cents. The company expects a decrease in revenues of between 2% and 10% in the first quarter of 2023 and that the number of users will be approximately 383 million.
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