Snap stock is trading 5% higher on Tuesday, putting it on track for its third consecutive day of good gains. Snap (NYSE:SNAP) gains are being fueled by a rising anti-TikTok (BDNCE) bill in the government of the United States.
Snap stock price surged 5.5% on Friday and 9.5% on Monday as news of impending action against what is perceived as a Chinese technical threat spread.
During a press conference scheduled for 3 p.m. ET, Democratic Sen. Mark Warner (head of the Senate Intelligence Committee) and Republican Sen. John Thune are slated to introduce a proposed law that would give President Biden greater authority to act promptly in response to dangers posed by foreign technology brands.
Warner said on Tuesday that the measure would give the Commerce secretary the authority to take legal action against companies with headquarters in six different countries, including China, Russia, Iran, North Korea, Venezuela, and Cuba.
Warner said on Sunday that a comprehensive approach was needed to ensure that the United States could restrict or prohibit foreign technology as required. Does it refer to the app TikTok?
It indicates that TikTok is a candidate for consideration. Warner said, “Listen, you have 100 million Americans using TikTok, and they spend 90 minutes on it daily.” TikTok may be used as a propaganda weapon, which disturbs me more than the fact that they are stealing information from US citizens and not protecting it. The kinds of videos you encounter likely support specific ideological causes. The content shown on TikTok to children in China, which is focused on technological advancements and scientific discoveries, is quite different from the content shown to children in the United States.
Warner emphasized that the measure is not directed primarily at TikTok but rather at a method that eliminates the need to handle concerns alone.
It would be identical to a measure of a similar kind that was passed out of the House Foreign Affairs Committee the previous week.
Other Internet content firms, such as Pinterest +1.5% and Meta Platforms +0.5%, also in the aftermath of news regarding its own additional job-cutting activities, went dramatically higher as the market opened on Tuesday. However, these gains have been somewhat tempered in the wake of Fed Chairman Jerome Powell’s hearing before the Senate on the same day.