TikTok experiencing a potential US ban

Snapchat rallies on potential TikTok ban: The Weekly Scoop

This week, Snapchat shareholders are snap-happy at talks of a TikTok ban, pharma company BridgeBio makes a major medical breakthrough, and electric car maker Rivian has its stock stall as demand for EVs fall. Hope you’re hungry, it’s time for this week’s scoop.

💡 If you want these updates delivered to your inbox every Friday, sign up here

Green ornament

Snap-happy shareholders as stock soars 12% 📸

Potential TikTok ban: this week, Snap stock soared as US lawmakers push for the ban of rival platform TikTok over cybersecurity concerns. President Biden’s thoughts on TikTok? “I’m not sure. I know I don’t have it on my phone”. If he does ban TikTok, it’ll leave the US market wide open for Snapchat. 

  • China plays eye spy: Recently, the US has shot down what were believed to be ‘Chinese spy balloons’ that entered Western territory. Ongoing reports have claimed China is trying to keep tabs on the Western world, which doesn’t bode well for TikTok lovers. 

  • Snapchat Spotlight: Snapchat released Spotlight as a way to compete with TikTok, but failed to steal any significant market share of the 113 million engaged TikTok users in the US. But with TikTok potentially out of the picture, Snapchat may just enter the spotlight… literally. 

BridgeBio stock grows 55% 💉

Positive earnings: Pharmaceutical company BridgeBio (BBIO) blitzed Wall Street's expectations thanks to a study of dwarfism in children. 

  • Drug breakthrough: The company tested a drug called infigratinib in children who suffer from slow bone growth. 8 out of 10 children responded to the treatment, meaning they could expect to grow 3cm in a year, which is double what analysts had expected. 

  • Ahead of the pack: A rival treatment from BioMarin (BMRN) called Voxzogo showed a 2cm per year improvement, yet its stock fell 6.8%. Whilst it’s great to see numerous companies making breakthroughs, the stock market has only seemed to reward 1st place.

Rivian stock stalls 14% 🚙

Cash is king: Electric car maker Rivian plans to keep its cash flow healthy by selling bonds worth $1.3 billion, but why has this caused the stock to fall?

  • It’s all about demand: Rivian plans to produce around 50,000 vehicles in 2023, 10,000 less than analysts had forecasted. Whilst EVs may be the current craze, it appears demand for Rivian vehicles is falling. Although Rivian has enough cash to last them until 2025, it seems it's keen to take some extra precautions. Has this spooked investor confidence?  

  • Shrinking workforce and shrinking margins: When an EV is in a start-up phase, it often has to make expensive vehicles to ensure its margins are strong. But with Tesla making electric vehicles more affordable, it’s proving tough for companies like Rivian to stay in the game. As a result, the company cut 6% of its workforce last month to help save on costs.

What have we learnt this week? 🤓 

  • Current affairs move stock prices: TikTok has completely disrupted the social media market through slick algorithms and innovative tech. But if a Government bans you, there’s little you can do. 

  • Medical breakthroughs excite investors: as long as medical conditions exist, there will always be a demand for treatments. In the investing world, where there’s demand, there’s money.

  • EV start-ups make expensive cars first: Tesla’s first model was the Roadster, a $100,00 car. Why? Because that model gave it the biggest margins. Rivian’s cheapest model is currently $68,000, but with Tesla selling some vehicles around $45,000 during a cost-of-living crisis, t might prove difficult for Rivian to keep in the race. 

Thanks for tucking in! Want to receive these updates every Friday? Sign up here or share via WhatsApp with your friends.

*Figures correct as of March 8th 2023.

Past performance does not guarantee future results. Capital at risk when investing.

This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

Meet the authors

James Ashoo photo

James Ashoo

Senior Content Writer

James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

Harjas Singh

Harjas Singh

Chief Product Officer & Co-Founder

With a wealth of experience in fintech, Harjas is the man in the know when it comes to all things product. Investing features, chatting capabilities and thriving communities – he oversees all development on the Shares app!

Harry Harrison

Harry Harrison

Finance Writer

Harry is an experienced business writer, with a love for all things tech. In his free time, he enjoys reading, playing sport and winning at chess. He also loves posting inside the Shares app!