Snap Inc. (SNAP) shares surged 5.2% in Wednesday's pre-market trading session, as investors reacted positively to reports that rival social media platform TikTok could face a nationwide ban in the United States as early as this Sunday.
According to reports, TikTok plans to shut down its app for all U.S. users if the Supreme Court fails to block a federal ban on the Chinese-owned app. The potential ban stems from concerns over national security and data privacy risks associated with TikTok's Chinese ownership.
Analysts believe that a TikTok ban could significantly benefit Snap, as it would remove a major competitor from the U.S. social media landscape. Without TikTok's presence, Snap's Snapchat app could see an influx of users, especially among the younger demographic that has been a key target for both platforms.
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