Snap's stock price has surged as efforts to ban TikTok are increasingly gathering support in the U.S. Congress.
The stock has gone up over 16% in the last five days.
Monday's price has pushed Snap above its 200-day moving average for the first time since 2021.
- U.S. Senate Intelligence Committee Chairman Mark Warner recently stated that he plans to present a bill that would allow the U.S. to ban TikTok, among other Chinese apps.
- If TikTok is banned, apps like Snap are seen as the immediate beneficiaries due to their established presence with younger users and their existing products that offer short-form content.
- Snapchat has 363 million daily active users worldwide, a third of which are in the U.S.
- TikTok has surpassed 1 billion users globally. In the U.S., the app has over 130 million monthly active users, most of whom are 13-30 years old.
- Since November 2022, over two dozen U.S. states have banned TikTok on government-issued devices.
The White House recently directed U.S. federal agencies to delete the app from government devices within 30 days due to security concerns.
