Billionaire investor Elon Musk could intervene as TikTok’s U.S. ban draws near. Meanwhile, a horde of TikTok’s 170 million U.S. users are fleeing to another Chinese social media app, RedNote. The U.S. Supreme Court and President-elect Donald Trump could avert the ban before the law comes to pass on January 19. At the same time, TikTok is slowly prepping for the app to go black in the U.S.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
TikTok Explores Various Scenarios to Save U.S. Operations
TikTok is gearing up for the shutdown of its U.S. operations on Sunday, a day before Trump’s Inauguration Day. Reports suggest that Chinese officials are considering involving Trump-ally Musk as a possible intermediary to convince Trump to delay the ban. In his earlier speeches, Trump said that he would need more time to find an alternate solution to “save” TikTok, which means that he could either stop the ban or delay it. Some reports also suggest that China is considering selling TikTok’s U.S. operations to Musk.
In the meantime, TikTok stated in a memo to roughly 7,000 U.S. employees that the company will continue to pay their salaries and benefits even if the law is passed. TikTok reassured its employees that management was determined to protect its U.S. users and employees. Management is evaluating different scenarios, TikTok added. The company also stated that the bill was not framed in a way that would impact their employees but would hit only U.S. users.
If the law goes into effect, TikTok’s new user downloads from Alphabet’s (GOOGL) Google Play Store and Apple’s (AAPL) App Store would be banned. Even other companies would be banned from offering TikTok’s U.S. app. However, existing users would be able to continue using the app for some time.
TikTok Is Losing Ground to Rivals
Meanwhile, hordes of TikTok’s U.S. users are already finding alternative apps to continue sharing their thoughts, views, videos, and images. According to a source from RedNote, over 700,000 new users have joined the app in just two days. It became the second most freely downloadable app on Apple’s app store on January 14. Additionally, according to app data firm Sensor Tower, the U.S. downloads of the app soared over 200% this week compared to last year and jumped more than 194% on a week-over-week basis.
RedNote is a venture capital-backed startup with a current valuation of $17 billion. Known as Xiaohongshu in China, Rednote boasts over 300 million users and has plans to launch an IPO (initial public offering) in China.
What Are the Best Chinese Stocks to Buy Now?
While TikTok is testing the waters, there are a handful of other successful Chinese stocks that are attractive investment options for U.S. investors. We leveraged TipRanks’ Stock Comparison Tool to see which Chinese stocks are the best to buy now.
