Morgan Stanley expects a bunch of US companies to benefit if a federal ban on TikTok goes into effect on Sunday.
There have been reports that the renowned social platform for sharing short videos plans on drawing the curtains on its app in the United States on January 19th.
Following are the top 6 companies that could emerge as winners if TikTok indeed shuts down in the US.
Meta Platforms Inc (NASDAQ: META)
Morgan Stanley analyst Brian Nowak expects Meta Platforms to be one of the primary beneficiaries of a potential shutdown of TikTok in the United States.
Such a development, he’s convinced, could lift the company’s earnings per share estimates for 2026 by as much as 9.0%.
“Every 10% of TikTok’s US time Meta captures would likely add 30 cents to 60 cents to our $30 EPS estimate for 2026,” the analyst told clients in a research note on Wednesday.
Shares of Meta Platforms Inc are currently up some 75% versus the start of 2024.
Alphabet Inc (NASDAQ: GOOGL)
Meta Platforms is unlikely to be the only one among tech titans to benefit from a potential ban on TikTok in the US, according to Brian Nowak.
Google-parent Alphabet Inc could prove to be a winner as well – as YouTube could see $400 million to $750 million in incremental revenue for every 10% of TikTok’s time it captures.
Ultimately, YouTube’s advertising revenue could increase by up to 2.0% in 2026 if TikTok shuts down in the United States on Sunday, the Morgan Stanley analyst added in his report.
Google stock has gained about 30% over the past four months.
Snap and Pinterest Inc
Other than the big tech names, Brian Nowak expects social platforms Snapchat and Pinterest to benefit from the demise of TikTok US.
For Snap, in particular, he projected a whopping 7.0% to 15% increase in advertising revenue for every 10% of TikTok’s US time it captures.
The analyst, however, cautioned that Snap and Pinterest must significantly improve their performances and establish that advertising on their social platforms delivers solid returns to unlock that tailwind.
Both SNAP and PINS have been in a sharp downtrend since June, 2024.
AppLovin, Trade Desk, and Reddit
Finally, the Morgan Stanley analyst expects advertising software companies Trade Desk and AppLovin to benefit if the federal ban on TikTok goes into effect on Sunday.
Shares of both companies were popular among investors last year, with AppLovin having ended 2024 up more than 700%. It’s reasonable to expect Reddit growth to accelerate if TikTok is shuttered in the US.
“TikTok’s ban may increase the ramp in which RDDT, APP and TTD grow their structural number of advertisers and spend per advertisers,” according to Brian Nowak.
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