Microsoft Perspective Reaction (MSFT -1,7%) TikTok’s resumption of U.S. operations (BDNCE) has so far had little impact on social media stocks.
The alphabet is even lower today (GOOG -4,6%, GOOGL -5%) – Google has tried unsuccessfully for years to create a sensation on social media – while Facebook (NASDAQ: FB) holds solid gains thanks to its profit reaction, + 7,3%. Pinterest (NYSE: PINS) is still up 31.3% in reaction to its earnings report, while Snap (NYSE: SNAP) found a new higher leg – + 2,8%.
President Trump is reportedly prepared to order the divestment of TikTok in the United States via a national security review at CFIUS, although there are concerns about a potential Microsoft purchase and whether Chinese investors retain part of the American unit, says Charlie Gasparino of Fox Business – so a full review is ahead.
Meanwhile, The Information noted that a split at TikTok will be hard to make (or do well): it would mean cutting off the app’s access to the technology that powers “everything from personalized recommendations to going through content moderation ”, which means that on TikTok it wouldn’t be quite the same.