TikTok scrutiny could be bad news for U.S. companies, Fast Money traders say
Potential authorities motion in opposition to Chinese language social media large TikTok may end in backlash that damages U.S. firms, in line with 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 might wall off American consumer knowledge. A ban of TikTok could possibly be a lift, at the very least within the short-term, to its social media opponents within the U.S., however the repercussions from China may harm U.S. firms long term, in line with 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 isn’t fairly,” Seymour mentioned. Man Adami, director of advisor advocacy at Personal Advisor Group, mentioned the potential blowback from China was the principle factor he was on the lookout for after the listening to. “It hasn’t occurred but, and I hope it would not occur. However the firms within the crosshairs are clearly names like Starbucks , McDonald’s , and Apple ‘s on the high of that checklist. And I do not suppose that threat has been priced in practically considerably sufficient,” Adami mentioned. And authorities motion in opposition to TikTok could possibly 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 enormous concern in regards to the addictive points of brief format video and social media. That is Reels as properly. I feel that whereas this appears to be a transparent profit within the close to time period, which I do not suppose is priced in, we’ll see adjustments,” Munster mentioned.