Morgan Stanley believes that a number of US companies will benefit from a federal TikTok ban, which is set to take effect on Sunday.
According to reports, the popular social platform for sharing short video plans to shut down its app in the United States beginning January 19 th.
If TikTok does indeed shut down in the US, the following six companies could emerge as winners.
Meta Platforms Inc (NASDAQ: META)
Morgan Stanley analyst Brian Nowak believes Meta Platforms will be one of the main beneficiaries of a possible shutdown of TikTok.
He believes that such a development could boost the company’s earnings estimates per share for 2026 by up to 9.0%.
In a research note published on Wednesday, the analyst said that every 10% of TikTok’s US time Meta captures could add between 30 cents and 60 cents to their $30 EPS estimate.
Meta Platforms Inc shares are up 75% since the beginning of 2024.
Alphabet Inc (NASDAQ: GOOGL)
Brian Nowak believes that Meta Platforms will not be the only tech titan to benefit from the potential ban of TikTok on the US market.
Alphabet Inc, the parent company of Google, could also be a big winner – YouTube could earn $400 million to 750 million dollars for every 10% share of TikTok time.
Morgan Stanley analyst said in his report that if TikTok is shut down in the United States this Sunday, YouTube’s ad revenue could rise by up to 2.0% in 2026.
Google stock has gained around 30% in the last four months.
Snap and Pinterest Inc
Brian Nowak believes that social platforms Snapchat, and Pinterest will benefit from the death of TikTok US.
Snap, in particular he predicted a 7.0% to 15 % increase in advertising revenues for every 10% of TikTok’s US time that it captures.
The analyst cautioned, however, that Snap and Pinterest need to significantly improve their performance and prove that advertising on their social media platforms delivers solid returns in order to unlock this tailwind.
Since June 2024, both SNAP and PINS are in a steep decline.
AppLovin Trade Desk and Reddit
Morgan Stanley analyst, meanwhile, expects advertising software firms Trade Desk and AppLovin will benefit from the federal ban of TikTok if it goes into effect Sunday.
AppLovin shares ended 2024 with a 700% increase. Reddit’s growth will likely accelerate if TikTok in the US is shut down.
Brian Nowak says that the ban on TikTok could increase the number of advertisers, and the amount they spend per advertiser.
This post Top 7 stocks which could benefit from TikTok US shut down may be updated as new information becomes available
This site is for entertainment only. Click here to read more
