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With TikTok Under the Microscope, Could Snap Stock Catch a Bid?

Editor’s note: “With TikTok Under the Microscope, Could Snap Stock Catch a Bid?” was previously published in August 2022. It has since been updated to include the most relevant information available.

Though there are pockets of strength in the digital advertising world, it’s broadly down. And the biggest weakness has been in social advertising. Think Snap (SNAP), Pinterest (PINS), Twitter (TWTR).

But recent regulatory scrutiny of TikTok should provide tailwinds for those companies, Snap in particular.

Indeed, TikTok has really taken over. It’s the most popular social media app by far and away. But regardless of its success, it’s now under the regulatory microscope of the U.S. government.

Whether fact or fiction, consumers are being warned that China is harvesting data through the app. With more coverage of this, consumer behavior is likely to change. And the closest competitor to TikTok in the social media space? Snap. That means a possible incoming rally for Snap stock.

Zooming out, we’re likely to see continued tight digital advertising budgets for the next few months. But after that, there should be a nice rebound in spending.

Since they’re getting washed out right now, it’s the perfect time to get into these digital advertising stocks ahead of that ’23 rebound. And one of the biggest opportunities we see right now is with Snap stock.

We cover this and much more in our full episode at Hypergrowth Investing on YouTube.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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