From InvestorPlace.: 2024-03-29 20:02:03

The U.S. House of Representatives passed a bill to ban TikTok, which could negatively impact several U.S. companies and the stock market. If the ban is ratified by the Senate, it could lead to ByteDance selling its TikTok division, affecting Chinese listings on U.S. exchanges and marketing campaigns reliant on TikTok for exposure.

PDD Holdings, positioned as a low-cost competitor to Amazon, may benefit from the TikTok ban due to its subsidiary Temu. However, the company relies on expensive social media advertising to reach consumers. General sentiment towards Chinese companies among U.S. retail investors may worsen, impacting PDD’s price stability post-ban.

Alibaba, China’s equivalent to Amazon, could face similar challenges as PDD if TikTok is banned in the U.S. Its international reach, including AliExpress, may be hampered by restrictions in markets opposing the Chinese Communist Party. The company’s reputation in Western markets could suffer, potentially dissuading retail investors from Chinese stocks.

HelloFresh, a top spender on TikTok advertising, stands to lose exposure if the app is banned. The company relies on short-form advertisements to promote its meal kit delivery services. Without TikTok, HelloFresh may need to shift to more costly advertising outlets, impacting its revenue from newly acquired customers.



Read more at InvestorPlace.: 3 Stocks to Exit Now Ahead of Any Chinese App Bans