Snap (NYSE: SNAP) shares jumped more than 9% on Monday, rising above the 200-day moving average for the first time since 2021, after US Senate Intelligence Committee Chairman Mark Warner told Fox News that he plans to introduce a bill this week to ban Chinese technology, including ByteDance Ltd's social media service.

Snap's shares have been battered by intense competition in short-form video platforms and a bleak digital ad market. The company has underperformed its peers, with shares dropping 75% since the end of 2021, compared to 45% for Meta Platforms (NASDAQ: META) and 27% for Pinterest (NYSE: PINS).

According to Bloomberg Intelligence, if US lawmakers proceed with a TikTok ban, YouTube could gain the most user market share among social media peers due to its content-recommendation algorithm and revenue-sharing model. While Snap, Meta Reels, and Roblox may also experience increased engagement, YouTube may attract more creators.

By Davit Kirakosyan