Will TikTok Make or Break?

TikTok has been in the spotlight lately amidst growing worries that the immensely popular short-form video app may be banned in US. Already the app has been facing mounting restrictions on its usage on government devices in an increasing number of countries citing security threats that the humongous amount of data that it collects may by misused for intelligence-gathering activities. TikTok has long denied such allegations, but that has not alleviated the concerns.

However, I believe that a widespread ban on TikTok is unlikely to happen anytime soon, not least because it will face intense legal challenges on First Amendment that protects freedom of expression by Americans. Blocking a popular app among young users could create a political backlash too.

Furthermore, all social media platforms not just TikTok engage in rampant collection of their users’ data. It is undeniable that its Chinese ownership appears to be the root cause, and there will be no easy solution to that.

Meanwhile, I believe that other social media platforms will stand to benefit from the situation. $Meta Platforms, Inc.(META)$ is likely going to emerge as the biggest winner, besides $Snap Inc(SNAP)$ , as users outside TikTok are already watching the most short-form videos on Instagram’s Reels, while Snap’s Spotlight has the highest demographic overlap with TikTok. Hence, will Meta and Snap be good hedging bets against the ban of TikTok in US?

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Modified in.2023-03-26

TikTok's Issue: Who Will Benefit?

The Biden administration is demanding that TikTok’s Chinese owners sell the app or face a possible US ban of the app. Social media stocks also rose on the news. --------------------------------------------------------- Will other social media company benefit from the news? Do you support TikTok to be banned in US/ your country?

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Comments

YorkTurner
2023-03-27
YorkTurner
The business model of Meta Platforms heavily relies on advertising and generating revenue from user data, which has led to concerns about the company's influence on user behavior and the potential negative impact on democracy and society as a whole.
YaleBrewster
2023-03-27
YaleBrewster
The company's P/E ratio is around 20, which may indicate undervaluation compared to its sector.
YvetteGunther
2023-03-27
YvetteGunther
Meta should be next based on data mining and syncing with the DNC.
YeddaJohnson
2023-03-27
YeddaJohnson
Ban looks likely for Tik Tok.
icycrystal
2023-03-27
icycrystal
thanks for sharing
eveev
2023-03-27
eveev
Yeah!