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Quick Clips Tik Tok Ban Explained · Gil I Am

• 0:06
  Speaker 1: Federal Appeals Court panel is upholding a law that requires
• 0:10
  Speaker 1: TikTok to break its ties with its Chinese based parent
• 0:13
  Speaker 1: company byte Dance or be banned by mid January.
• 0:17
  Speaker 2: Well, the government for years now has been saying that
• 0:20
  Speaker 2: TikTok is a national security risk. Government is concerned that
• 0:23
  Speaker 2: TikTok has access to sensitive information people's viewing habits, large
• 0:28
  Speaker 2: swaths of data that the Chinese government could have access to.
• 0:32
  Speaker 2: They're afraid that the Chinese government can manipulate what people
• 0:35
  Speaker 2: are seeing on this app, and so they are basically
• 0:39
  Speaker 2: giving them an ultimatum. And today the judges, these three
• 0:43
  Speaker 2: panels of judge, this panel of three judges upheld about
• 0:46
  Speaker 2: lower court ruling, saying yes TikTok will either have to
• 0:50
  Speaker 2: divest itself, sell itself from its Chinese based parent company
• 0:53
  Speaker 2: byte Dance, or it will be banned from app stores
• 0:57
  Speaker 2: in the US.
• 0:59
  Speaker 3: Meantime, we haven't really talked a lot about the new
• 1:02
  Speaker 3: law in Australia that banned social media use for kids
• 1:05
  Speaker 3: under sixteen, I believe, but it is interesting the way
• 1:08
  Speaker 3: some policy around the world is coming to collision with
• 1:11
  Speaker 3: this industry.
• 1:13
  Speaker 4: Yeah, more and more criticism of the impact on teens
• 1:17
  Speaker 4: and kids. We see companies like Meta really work to
• 1:21
  Speaker 4: try to get ahead of this. They had their Instagram
• 1:23
  Speaker 4: for teens, they're trying to agegate that. And then you
• 1:26
  Speaker 4: have the fact that this Australia law really tries to
• 1:29
  Speaker 4: put the pressure on these social platforms themselves to deal
• 1:32
  Speaker 4: with that age gating, whereas companies like Meta would rather
• 1:36
  Speaker 4: have the likes of Apple or Google the app stores
• 1:39
  Speaker 4: be responsible for TikTok. A federal judge has refused to
• 1:43
  Speaker 4: block the law that says that TikTok has to be
• 1:45
  Speaker 4: divested by its parent company Chinese ByteDance by January nineteenth
• 1:50
  Speaker 4: or will be banned now. The judge had been asked
• 1:54
  Speaker 4: to review this and a rule on whether TikTok must
• 1:58
  Speaker 4: abide by the DOJ's ban to give them time to
• 2:01
  Speaker 4: appeal this. So this is a defeat for TikTok. We
• 2:04
  Speaker 4: do expect TikTok to appeal this up to the Supreme Court.
• 2:09
  Speaker 4: We have reached out to TikTok for comment, we have
• 2:11
  Speaker 4: not heard back yet. And of course Carl, there is
• 2:14
  Speaker 4: of course this wild card of what incoming President Donald
• 2:18
  Speaker 4: Trump will do because he's going to be inaugurated the
• 2:21
  Speaker 4: day after this ban is scheduled to go into effect.
• 2:24
  Speaker 3: Looking at some reaction out of shares of Meta, for example, Julia,
• 2:28
  Speaker 3: that's going to be another all time high up a
• 2:31
  Speaker 3: couple percent. There had been I think a school of thought,
• 2:34
  Speaker 3: and you could see it in some of the stocks
• 2:35
  Speaker 3: of social names in the last few days that maybe
• 2:38
  Speaker 3: this was in the offing.
• 2:41
  Speaker 5: Yeah.
• 2:41
  Speaker 4: I mean, look, when you look at the potential implications
• 2:44
  Speaker 4: for this, the companies that would benefit from the additional
• 2:47
  Speaker 4: eyeballs and AD dollars would be Meta, Snap and also YouTube.
• 2:51
  Speaker 4: Those are the companies that are really competing for those
• 2:53
  Speaker 4: social eye dollars, AD dollars and eyeballs. But there was
• 2:58
  Speaker 4: a sense that this was unlikely to happen because President
• 3:01
  Speaker 4: Trump had said that he did now oppose a ban,
• 3:04
  Speaker 4: despite the fact that when he was in office the
• 3:06
  Speaker 4: first time, he was advocating for a band. Federal judge
• 3:09
  Speaker 4: has refused to block the law that says that TikTok
• 3:12
  Speaker 4: has to be divested by its parent company, Chinese Byte
• 3:16
  Speaker 4: Edance by January nineteenth or will be banned. And of course, Carl,
• 3:21
  Speaker 4: there is of course this wildcard of what incoming President
• 3:25
  Speaker 4: Donald Trump will do because He's going to be inaugurated
• 3:28
  Speaker 4: the day after this ban is scheduled to go into effect.
• 3:31
  Speaker 4: So a lot of questions here about what will happen next.
• 3:33
  Speaker 4: What we do, in fact, expect TikTok to appeal this
• 3:38
  Speaker 4: decision by the judge to refuse to block this law
• 3:41
  Speaker 4: that would call for a ban or divestiture of TikTok. Yeah,
• 3:46
  Speaker 4: I mean, look, when you look at the potential implications
• 3:49
  Speaker 4: for this, the companies that would benefit from the additional
• 3:52
  Speaker 4: eyeballs and AD dollars would be Meta, Snap and also YouTube.
• 3:56
  Speaker 4: Those are the companies that are really competing for those
• 3:58
  Speaker 4: social eye dollars, AD dollars and eyeballs. But there was
• 4:03
  Speaker 4: a sense that this was unlikely to happen because President
• 4:06
  Speaker 4: Trump had said that he did now oppose a ban,
• 4:09
  Speaker 4: despite the fact that when he was in office the
• 4:11
  Speaker 4: first time, he was advocating for a band.
• 4:14
  Speaker 6: So even though this.
• 4:15
  Speaker 4: Judge has ruled the way that he has, there are
• 4:18
  Speaker 4: still various options here for President Trump to say that,
• 4:22
  Speaker 4: in fact, TikTok isn't compliance with the law, and then
• 4:25
  Speaker 4: we'll also see what the Supreme Court says. They could
• 4:28
  Speaker 4: either opt to allow TikTok to continue operating while the
• 4:31
  Speaker 4: litigation proceeds, or the Supreme Court could actually just rule
• 4:35
  Speaker 4: on this before January nineteen. If you're thirteen years old
• 4:38
  Speaker 4: or fourteen years old, you don't have an ID, you
• 4:41
  Speaker 4: don't maybe want facial recognition used to figure out how
• 4:44
  Speaker 4: old a kid is. So a complex issue. And then
• 4:47
  Speaker 4: of course you have some states here in the US
• 4:49
  Speaker 4: that are also raising the issue of trying to limit
• 4:53
  Speaker 4: access to social media platforms by teens, and that's something
• 4:57
  Speaker 4: that if there's a patchwork of of these laws across
• 5:01
  Speaker 4: the country, would be challenging for a meta or say
• 5:04
  Speaker 4: a snap to manage.
• 5:06
  Speaker 7: Right.
• 5:06
  Speaker 3: Thinking back to Benioff's comparison to social media and tobacco,
• 5:10
  Speaker 3: and it's interesting to see how the regulatory structure is
• 5:12
  Speaker 3: beginning to treat it like some kind of addictive substance.
• 5:15
  Speaker 4: They could either opt to allow TikTok to continue operating
• 5:19
  Speaker 4: while the litigation proceeds, or the Supreme Court could actually
• 5:22
  Speaker 4: just rule on this before January nineteen.
• 5:27
  Speaker 3: Meantime, we haven't really talked a lot about the new
• 5:29
  Speaker 3: law in Australia that banned social media use for kids
• 5:33
  Speaker 3: under sixteen, I believe, but it is interesting the way
• 5:36
  Speaker 3: some policy around the world is coming to collision with
• 5:38
  Speaker 3: this industry.
• 5:39
  Speaker 7: At TikTok, which sued the government over the law in
• 5:41
  Speaker 7: May so a month later, has long denied it could
• 5:45
  Speaker 7: be used by Beijing to spy or manipulate on Americans.
• 5:49
  Speaker 7: Its attorneys have accurately pointed out that the US has
• 5:52
  Speaker 7: not provided evidence to show that the company handed over
• 5:56
  Speaker 7: user data to the Chinese government or manipulated content or
• 6:00
  Speaker 7: Beijing's benefit in the US. They have also argued the
• 6:04
  Speaker 7: law is predicated on future risks, which the Department of
• 6:07
  Speaker 7: Justice has emphasized, pointing in part to unspecified action that
• 6:12
  Speaker 7: it claims the two companies have taken in the past
• 6:15
  Speaker 7: due to demands from the Chinese government. They added, quote here,
• 6:19
  Speaker 7: the government acted solely to protect that freedom from a
• 6:22
  Speaker 7: foreign adversary nation and to limit that adversary's ability to
• 6:27
  Speaker 7: gather data on people in the United States. TikTok and
• 6:31
  Speaker 7: by Dance, another plaintiff in the lawsuit, expected to appeal
• 6:34
  Speaker 7: to the Supreme Court. In the meantime. President elect Donald Trump,
• 6:38
  Speaker 7: who tried to ban TikTok during his first term and
• 6:41
  Speaker 7: whose Justice Department would have to enforce the law, said
• 6:45
  Speaker 7: during the presidential campaign that he is now against a
• 6:48
  Speaker 7: TikTok ban and would work to quote unquote save the
• 6:51
  Speaker 7: social media platform. The law signed by President Biden back
• 6:55
  Speaker 7: in April culminated a year's long saga in Washington over
• 7:00
  Speaker 7: the short term video sharing app, which the government sees
• 7:03
  Speaker 7: as a national security threat due to its connections to China. Again,
• 7:07
  Speaker 7: the federal Appeals Court panel upholding a law that could
• 7:11
  Speaker 7: lead to a ban on TikTok in just a few
• 7:14
  Speaker 7: short months in the US, handing a defeat to the
• 7:17
  Speaker 7: popular social media platform as it fights for survival in
• 7:22
  Speaker 7: the US. Will keep you updated as it is likely
• 7:24
  Speaker 7: we could potentially see the Supreme Court take up this
• 7:27
  Speaker 7: case in the coming months.
• 7:30
  Speaker 5: Hey Shannon, So, TikTok's main argument in fighting against this
• 7:34
  Speaker 5: law that Congress passed and that the DOJ was defending
• 7:37
  Speaker 5: in court that would either force the company to divest
• 7:42
  Speaker 5: to a US based company or a company that's not
• 7:44
  Speaker 5: based in China, or face a potential ban. TikTok's argument
• 7:49
  Speaker 5: was that this is an upfront on Americans First Amendment rights,
• 7:52
  Speaker 5: their free speech rights because so many Americans use this app.
• 7:57
  Speaker 5: But today the Court of Appeals that TikTok was appealing
• 8:01
  Speaker 5: this law too, decided that it's okay for this law
• 8:06
  Speaker 5: to remain in place. That in fact, on January nineteenth,
• 8:10
  Speaker 5: twenty twenty five, it's quite possible that the wheels could
• 8:14
  Speaker 5: start turning to force TikTok to either sell to a
• 8:18
  Speaker 5: US or other friendly country based company or potentially face
• 8:22
  Speaker 5: a ban in the United States. So it's upheld for now.
• 8:26
  Speaker 8: It's not the end of the conversation. But over at
• 8:28
  Speaker 8: Bloomberg Intelligence there at Matthew Shettleman seen a seventy percent
• 8:31
  Speaker 8: chance that TikTok loses the DC Circuit ruling moving forward
• 8:35
  Speaker 8: here with the likelihood that the company is going to
• 8:37
  Speaker 8: make a last ditch plea to the Supreme Court to
• 8:40
  Speaker 8: pause that January nineteenth deadline. Dan, thanks so much for
• 8:43
  Speaker 8: joining us here. We appreciate it. We're going to talk
• 8:45
  Speaker 8: about the market reaction to this news again, TikTok facing
• 8:48
  Speaker 8: that ban in the United States here after appeals court
• 8:52
  Speaker 8: blocking refusing to block a law on this And it's
• 8:56
  Speaker 8: really interesting because the Magnificent seven stocks, they've already been
• 8:58
  Speaker 8: up about sixty five percent year to date. We've seen
• 9:01
  Speaker 8: a four percent rally. I believe over the last couple
• 9:03
  Speaker 8: of days, already hitting a fresh record yesterday, and then
• 9:07
  Speaker 8: you've got this news on top of it, adding to
• 9:09
  Speaker 8: a bit of that rally. The likes of Nvidia actually
• 9:12
  Speaker 8: down right now, but every other name in the Mag
• 9:13
  Speaker 8: seven moving to the upside, especially those that are beneficiaries
• 9:17
  Speaker 8: of this potential band. We're going to talk about the
• 9:18
  Speaker 8: market reaction to this news that we've seen a four
• 9:21
  Speaker 8: percent rally I believe over the last couple of days,
• 9:23
  Speaker 8: already hitting a fresh record yesterday, and then you've got
• 9:27
  Speaker 8: this news on top of it, adding to a bit
• 9:30
  Speaker 8: of that rally. The likes of Nvidia actually down right now,
• 9:32
  Speaker 8: but every other name in the Mag seven moving to
• 9:34
  Speaker 8: the upside, especially those that are beneficiaries of this potential band.
• 9:38
  Speaker 6: Yeah, and we talked to so many strategists even this
• 9:39
  Speaker 6: morning talking about how critical it is protective retain and
• 9:43
  Speaker 6: maintain it's momentum here going forward into twenty twenty five
• 9:46
  Speaker 6: if we want to continue to see this risk on
• 9:48
  Speaker 6: the sentiment that we certainly have seen in the market,
• 9:50
  Speaker 6: to say the least over the last of several months
• 9:53
  Speaker 6: and several years. So again, when you see you're ruling
• 9:55
  Speaker 6: like this obviously lots of questions just about what exactly
• 9:58
  Speaker 6: this is going to mean here, the fact that talk
• 10:00
  Speaker 6: now facing that usban after the appeals Core did refuse
• 10:03
  Speaker 6: to block the law. Questions about whether or not it's
• 10:06
  Speaker 6: going to be or I guess how strictly it will
• 10:09
  Speaker 6: be enforced, is a better way to put that here.
• 10:11
  Speaker 6: Under the incoming Trump administration.
• 10:12
  Speaker 9: They've done a very good job of that with their reels.
• 10:17
  Speaker 9: They regularly talk about reels during their earnings calls. They
• 10:21
  Speaker 9: regularly talk about how AI is enhancing that. That's the
• 10:25
  Speaker 9: meat and potatoes of TikTok, right, It's the algorithm that
• 10:28
  Speaker 9: keeps feeding you those short form videos. And so Meta's
• 10:32
  Speaker 9: done essentially what it did to Snap and others by
• 10:37
  Speaker 9: kind of copying that whole format and done it very well.
• 10:40
  Speaker 9: And so they've seen improvements there. Without TikTok, you can
• 10:44
  Speaker 9: only imagine that creators are either going to go to
• 10:46
  Speaker 9: Meta and work on Instagram and reels and bring their
• 10:51
  Speaker 9: followings along with them, or they would move to something
• 10:55
  Speaker 9: like YouTube and work with YouTube shorts, something along those lines.
• 10:58
  Speaker 9: So this is would be a huge boon for Meta itself.
• 11:03
  Speaker 6: If we want to continue to see this risk on
• 11:05
  Speaker 6: the sentiment that we certainly have seen in the market,
• 11:07
  Speaker 6: to say the least over the last several months and
• 11:09
  Speaker 6: several years. So again, when you see a ruling like this,
• 11:12
  Speaker 6: obviously lots of questions just about what exactly this is
• 11:15
  Speaker 6: going to mean here, the fact that TikTok now facing
• 11:17
  Speaker 6: that US ban after the appeals court did refuse to
• 11:20
  Speaker 6: block the law, questions about whether or not it's going
• 11:23
  Speaker 6: to be or I guess how strictly it will be
• 11:25
  Speaker 6: enforced is a better way to put that here under
• 11:27
  Speaker 6: the incoming Trump administration. But again, when you see some
• 11:30
  Speaker 6: of that excitement playing out on the street here this
• 11:33
  Speaker 6: morning across some of those megacap tech names, given the
• 11:36
  Speaker 6: size of it, given their influence that they do have
• 11:39
  Speaker 6: on the market, given the massive run that we have
• 11:41
  Speaker 6: seen over the last couple of years, it does point
• 11:44
  Speaker 6: just in terms of that or adds to the overall
• 11:46
  Speaker 6: bullish sentiment that we have been hearing from strategis entering
• 11:50
  Speaker 6: the new year. And I think kind of ups the
• 11:51
  Speaker 6: chances or ups the confidence I should say, just that
• 11:54
  Speaker 6: we could see more highs or more that movement to
• 11:57
  Speaker 6: the upside here in the and I think the incoming
• 11:59
  Speaker 6: Trump administry, like you were just saying, Maddie, is the
• 12:01
  Speaker 6: real question mark in the room right now, because this
• 12:03
  Speaker 6: band will go in effect the day before Trump assumes office.
• 12:06
  Speaker 6: But then, of course, his opposition to this band kind
• 12:09
  Speaker 6: of puts many of these questions back on the table
• 12:11
  Speaker 6: just exactly how his application opposition, excuse me, could potentially
• 12:16
  Speaker 6: complicate this measure and the enforcement that we could see
• 12:20
  Speaker 6: going forward. We know, like you were just saying, he
• 12:22
  Speaker 6: did flip after one of the top donors there, investor
• 12:25
  Speaker 6: in TikTok, also was trying to court some of those
• 12:27
  Speaker 6: younger voters.
• 12:28
  Speaker 8: He did support a TikTok ban due to national security challenges,
• 12:32
  Speaker 8: but one of his biggest donors, jeff yass is a
• 12:34
  Speaker 8: TikTok investor, following a meeting that the two had in
• 12:37
  Speaker 8: mar A Lago. We did see Trump changing his mind
• 12:40
  Speaker 8: on a TikTok ban. That's currently unclear what he'll be
• 12:43
  Speaker 8: able to do to kind of change the political appetite
• 12:46
  Speaker 8: for this band moving forward, because this has had significant
• 12:49
  Speaker 8: bipartisan supporting Congress, and of course we do have this
• 12:52
  Speaker 8: news crossing the wire now, TikTok facing that ban in
• 12:55
  Speaker 8: the United States. The appeals court refusing.
• 12:57
  Speaker 9: To block that lot. I think TikTok will continue to
• 13:00
  Speaker 9: try to argue the First Amendment side of things. But
• 13:03
  Speaker 9: as far as the broader tech industry, I mean, you're
• 13:05
  Speaker 9: talking about the numbers for the company's Meta Snap Amazon.
• 13:10
  Speaker 9: This kind of just benefits them so much. You know,
• 13:14
  Speaker 9: Meta has been fighting to make Instagram more relevant with
• 13:20
  Speaker 9: younger users who are on TikTok. Without TikTok, you can
• 13:22
  Speaker 9: only imagine that creators are either going to go to
• 13:25
  Speaker 9: Meta and work on Instagram and reels and bring their
• 13:30
  Speaker 9: followings along with them, or they would move to something
• 13:33
  Speaker 9: like YouTube and work with YouTube shorts, something along those lines.
• 13:36
  Speaker 8: The TikTok ban was upheld by an appeals court here
• 13:40
  Speaker 8: in the United States. TikTok's Chinese parent company facing a
• 13:43
  Speaker 8: ban in the US if it does not meet a
• 13:45
  Speaker 8: January nineteenth deadline to sell the video sharing app. This
• 13:49
  Speaker 8: is part of a federal appeals court ruling coming through
• 13:52
  Speaker 8: here on Friday. The company likely to issue another appeal
• 13:56
  Speaker 8: here or they do have until January to divest or
• 13:59
  Speaker 8: get banned from in the United States.
• 14:01
  Speaker 9: Then there's obviously Snap, a app that's more popular with
• 14:05
  Speaker 9: younger users, though, I mean it doesn't really make the
• 14:08
  Speaker 9: waves that it did when it originally came out. That
• 14:11
  Speaker 9: could also see a jump just because of the kids
• 14:15
  Speaker 9: looking for a place to go that you know their
• 14:18
  Speaker 9: uncles or whatever aren't hanging out on. And then you know,
• 14:22
  Speaker 9: there's the idea of the e commerce side, as you
• 14:24
  Speaker 9: talked about with Amazon.