What's Sending Snap Stock Higher Today?

Snap Inc SNAP shares are trading higher Thursday following multiple reports that TikTok could face a ban if owners don't divest. 

What To Know: The Biden administration has demanded that the owners of TikTok sell their stakes in the Chinese-owned short-form video app, according to a Wall Street Journal report citing people familiar with the matter.

The Committee on Foreign Investment in the U.S. pushed for the owners of ByteDance, the company behind the viral video platform, to sell their shares in recent days.

Related Link: Team Biden Reportedly Warns TikTok Ban Unless Chinese Owners Divest Stake — Meta, Snap Shares Shoot Up

TikTok on Wednesday reportedly said that if owners were forced to divest their stakes, it wouldn’t address the risks perceived by national security agencies. Instead the firm pledged to invest $1.5 billion into safeguarding U.S. user data from Chinese government access. 

"A change in ownership would not impose any new restrictions on data flows or access," a TikTok spokesperson reportedly said in a statement. 

"The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems."

Other social media platforms that feature short-form video capabilities are seen as beneficiaries of a potential TikTok ban, including Snap's Snapchat and Meta Platforms Inc's META Facebook and Instagram.

SNAP Price Action: Snap shares were up 5.71% at $10.92 at time of publication, according to Benzinga Pro.

Photo: Souvik Banerjee from Pixabay.