TLDR
- Snap stock rose over 3% Wednesday following Trump’s executive order delaying TikTok ban enforcement until December 16
- TikTok deal framework involves Oracle, Silver Lake, and Andreessen Horowitz taking 80% ownership of U.S. operations
- JMP Securities maintained Market Perform rating while highlighting positive marketer feedback on platform performance
- Nike marketing manager praised Snap’s incremental reach capabilities, especially for younger demographics
- Spotify confirmed Sponsored Snaps are “highly performant” due to low cost-per-thousand impression rates
Snap Inc. saw its shares climb more than 3% on Wednesday as investors reacted to fresh developments surrounding TikTok’s uncertain future in the United States. The social media company’s stock performance stood out against the broader market’s slight decline.
President Trump issued another executive order on Tuesday evening, marking the fourth delay in enforcing legislation that would effectively ban TikTok from operating in the country. The latest extension pushes the deadline to December 16, 2025.
The delay came after Treasury Secretary Scott Bessent announced that U.S. and Chinese officials had reached agreement on a framework for transferring TikTok’s American operations to domestic companies. Reuters reported that a consortium including Oracle, private equity firm Silver Lake Technology Management, and venture capital firm Andreessen Horowitz would take control of these operations.
According to sources familiar with the matter, the ownership structure would place approximately 80% control with U.S. investors. The remaining 20% would stay with Chinese interests.
Market Response and Competition Dynamics
For Snap, the extended timeline represents breathing room in an increasingly competitive social media landscape. The delay suggests that any potential TikTok ownership transfer will take considerable time to complete and implement.
A fully American-owned TikTok backed by well-funded investors like Oracle and Silver Lake could pose a formidable competitive threat. These companies bring substantial resources that could accelerate TikTok’s growth and market share expansion.
The uncertainty around TikTok’s future continues to create opportunities for existing platforms like Snap to maintain and potentially grow their user bases. Each delay provides more time for competitors to solidify their market positions.
Meanwhile, fresh analyst coverage provided additional context on Snap’s current market standing. JMP Securities maintained its Market Perform rating on Thursday, though the firm highlighted encouraging feedback from advertisers.
Advertiser Sentiment Remains Strong
The analyst note revealed positive comments from major brands about Snap’s advertising effectiveness. A Nike performance marketing manager specifically mentioned that Snap provides the most incremental reach after Meta and Google platforms.
Nike’s approach to Snap differs from other platforms in terms of return on ad spend expectations. The company applies more lenient requirements because Snap reaches younger consumers who typically maintain longer customer relationships.
Spotify also provided favorable feedback about Snap’s advertising products. The music streaming service described Sponsored Snaps as “highly performant” in their advertising campaigns.
However, Spotify attributed much of this performance to cost considerations. The platform noted that cost-per-thousand impressions on Sponsored Snaps remain “very low” compared to other advertising options.
JMP’s Market Perform rating indicates the firm expects Snap’s stock to track with sector averages. This neutral stance comes despite the positive advertiser feedback documented in their research.
The combination of competitive relief from TikTok delays and strong advertiser sentiment helped drive Wednesday’s stock gains. Snap closed the trading session up 3.93% while broader markets remained relatively flat.
