Snap’s TikTok Rally Is a Bet on Wins That Are Unlikely to Happen
Snap Inc., the parent company of Snapchat, has experienced a rally in its stock price, driven by the potential transformation of TikTok's US operations. However, experts suggest that this rally is based on short-term hopes that are unlikely to be realized in the long run. The article indicates that Snap's recent stock surge is a bet on potential wins from the changes in TikTok's US operations, such as a possible sale or restructuring. These events could potentially benefit Snap by reducing competition and increasing its market share. Nevertheless, the article cautions that these potential wins are unlikely to materialize, as the outcome of TikTok's US operations remains uncertain. The article suggests that investors should be cautious about trading on these short-term hopes, as the long-term impact on Snap's business remains unclear.
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