Loading…
Loading…
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.
What Happened: On Friday, Munster took to X, formerly Twitter, to express his views on the potential consequences of the ongoing TikTok saga. He also reiterated his earlier estimates saying, “I have the odds at 50% nothing happens to TikTok, 25% sale and 25% ban.”
Munster 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. “I believe if there is a forced sale or ban of TikTok, Chinese leadership will argue US tech companies are using their products to spy on the Chinese.”
The managing partner then 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%.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
He concluded by saying that despite being caught in U.S.-China tensions, Apple has historically received significant support from Chinese leadership. However, if the TikTok divestiture becomes law, it could potentially impact iPhone and Tesla sales in China.
“The bottom line: if the TikTok divestiture becomes law, there’ll likely be modest pressure on China iPhone sales and Tesla sales,” he stated.
Why It Matters: Munster’s comments come amid the ongoing debate over the future of TikTok in the U.S. Earlier this week, Munster 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.’s could gain a significant advantage.
On the other hand, 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.
Price Action: 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, according to Benzinga Pro.
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next: ‘I’m Shocked’: Gene Munster Recants Prediction As Apple Kills Electric Car Project
Image by oasisamuel on Shutterstock
Loading…
Loading…
