A TikTok ban in the US would be a 'positive catalyst' for other social networks
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If TikTok, owned by China's ByteDance (BDNCE), winds up being banned in the U.S. due to national security concerns, it would be a huge positive for multiple social networks, notably Meta Platforms (NASDAQ:META) and Snap (NYSE:SNAP), investment firm Citi said.
Analyst Ronald Josey, who reiterated the firm's buy rating on Meta (META), noted that if the powerful Committee on Foreign Investment in the U.S., or CFIUS, gets its way and TikTok is banned, engagement for social networks would go up, continuing the trend Meta (META) has seen in recent months. 
Josey noted that engagement trends for Facebook, Instagram and WhatsApp were the "highest ever" in the fourth-quarter and the company's Reels format saw twice as many reels played year-over-year during the period. 
The analyst added that a ban is "far from settled" at this point and TikTok's CEO, Shou Zi Chew, is slated to testify before Congress on March 23.
On Thursday, Chew told The Wall Street Journal that a sale would not address U.S. security concerns.
Meta (META) and Snap (SNAP) shares were down around 1.5% in premarket trading on Friday.
Earlier this week, it was reported that TikTok management is considering splitting itself from ByteDance (BDNCE) if an agreement can't be reached with the Biden Administration, with potential options including a sale or initial public offering.