Bessent Says Trump Was Ready To Let TikTok 'Go Dark' — Here's What That Means For Tech Stocks
President Donald Trump was ready to let TikTok "go dark" — and that hardball stance forced China back to the negotiating table, according to Treasury Secretary Scott Bessent. But while Washington debates national security, Wall Street is asking a different question: what does TikTok's uncertain fate mean for U.S. tech stocks?
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Bessent's Insider Playbook
In a wide-ranging CNBC Squawk Box interview on Tuesday, Bessent pointed to the turning point: "President Trump made it clear that he would have been willing to let TikTok go dark, that we were not going to give up national security in favor of the deal."
He noted that commercial terms between ByteDance and U.S. investors had been "done in essence" since spring, but China stalled after Trump's April 2 tariff announcement.
By spelling out Trump's leverage, Bessent gave investors the clearest signal yet that the Sep. 17 divestment deadline is more than political brinkmanship — it's a binary event for TikTok's U.S. presence.
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Winners and Losers In Social Stocks
If TikTok is forced to divest or stumble, the competitive landscape shifts.
Potential U.S. acquirers like Oracle Corp (NYSE:ORCL) or Walmart Inc (NYSE:WMT) could gain a powerful foothold in the short-form video market.
Meanwhile, rivals such as Meta Platforms Inc (NASDAQ:META) and Snap Inc (NASDAQ:SNAP) would be immediate beneficiaries if TikTok's U.S. operations face disruption. For these stocks, Bessent's comments transform a geopolitical fight into a market catalyst. The threat of TikTok "going dark" translates into a rare opening in a saturated social media space, one where advertising dollars could quickly be reallocated.
The Investor Takeaway
Bessent's candor underscored that this isn't just about foreign policy — it's about market share and stock valuations. For social media investors, Trump's TikTok ultimatum may be as consequential as any rate cut or earnings surprise.
Whether TikTok is sold, shut down, or saved, Bessent's remarks confirm that the outcome will reverberate well beyond Beijing and Washington, directly into the portfolios of U.S. tech investors.
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