Akamai recently reported strong earnings, but its stock plummeted over 20% due to investor anxiety regarding its relationship with TikTok's parent company, ByteDance. Concerns arose from TikTok's efforts to reduce reliance on Akamai for its operations and the legal challenges surrounding the app. A bipartisan law, stemming from Donald Trump's administration, raises questions about TikTok's legality and its partnerships. Consequently, Akamai disclosed potential risks in an SEC report, while tech giants like Apple and Google remain silent about their involvement with TikTok amidst this legal turmoil.
Akamai's stock fell over 20% due to investor concerns about its relationship with TikTok, particularly over TikTok's efforts to reduce reliance on Akamai and ongoing legal jeopardy.
The connection between Akamai and TikTok raises legal concerns, as TikTok's parent company ByteDance is still considered a problematic association under existing bipartisan legislation.
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