What do you think about Tencent and the executive order that Tencent and TikTok owner ByteDance are currently facing?
Daniel Martins, the writer behind The Apple Maven, broke down how important an app like WeChat is and what kind of impact these executive orders could have on Apple.
"There is no question that WeChat is a very popular app. Tencent’s “everything platform” (Facebook, LinkedIn, Uber, Instagram and others rolled up into one) has a very strong appeal among Chinese device users, both in the home country and abroad. The following quotes, even if anecdotal, may help to explain how attached to the platform some WeChat users seem to be," wrote Martins.
"It is precisely this platform, used by over 1 billion people each month and responsible for 30% of mobile internet time spent in China, that is at risk of being removed from Apple’s App Store by U.S. Presidential order. No doubt, demand for Apple’s devices could suffer, should the company cease to offer the WeChat app. The problem is that, in my view, the impact has been blown out of proportion," Martins continued. "Notorious Apple analyst Ming-Chi Kuo, of TF International Securities, says that global iPhone shipments could drop up to 30% if WeChat is banned entirely from Apple's App Store. The number, already large on the surface, seems absurd when put in perspective."
So what does Jim Cramer currently think about Tencent?