Deepwater Asset Management’s managing partner Gene Munster has raised concerns about potential Chinese retaliation against U.S. tech companies, including Apple Inc. (AAPL) and Tesla Inc. (TSLA) if TikTok is banned or sold in the U.S.
On Friday, Munster took to Twitter to express his views on the ongoing TikTok saga. He believes that if TikTok is forced to sell or banned, the Chinese government could accuse U.S. tech companies of using their products for espionage. Munster pointed out the significant revenue that U.S. tech companies generate from China, with Tesla accounting for about 23%, Apple at 18%, and NVIDIA Corporation (NVDA) at 8%.
Munster’s comments come amid the ongoing debate over the future of TikTok in the U.S. He also echoed former President Donald Trump’s views on the TikTok ban, saying if the social media platform indeed got banned in the U.S., Mark Zuckerberg-led Meta Platforms Inc. could gain a significant advantage.
However, Munster’s colleague and the other managing partner at Deepwater, Doug Clinton, has a different view on the potential outcome of the TikTok ban. Clinton believes that the most likely outcome is a sale, contrary to Munster’s prediction of a 25% chance of a sale.
Apple closed at $172.62 on Friday, down 0.22% from the previous close, while Tesla stock closed at $163.57, up 0.66% from the previous close.
In conclusion, the ongoing TikTok saga has raised concerns about potential Chinese retaliation against U.S. tech companies. If TikTok is forced to sell or banned, it could impact iPhone and Tesla sales in China. The future of TikTok in the U.S. remains uncertain, and tech companies are closely watching the developments in this saga.
