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TikTok Ban a Big Boost for Meta

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Author: Douglas A. McIntyre
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If the president signs a bill to ban TikTok from the United States or one that forces a sale to an American company, the biggest beneficiary is Meta Platforms Inc. (NASDAQ: META). It owns direct competitors Facebook, Instagram, Threads, and WhatsApp. Instagram, in particular, would lose a huge rival.

Such a ban could be a long way off if parent ByteDance can challenge the law in court. However, even the threat that TikTok could be shuttered may make users change where they spend their social media time. That could erode TikTok’s traffic.

Although accurate figures are hard to come by, Facebook is America’s most-used social media traffic, with a market share of about 77%. Instagram follows that at 56% and TikTok at 45%. However, TikTok may have the largest share of which social media platform people use most based on daily minutes. Total time is sometimes labeled “sessions.”

Meta stock has already had an extraordinary run, up 153% in the past year, while the Nasdaq is 41% higher. If a rival of TikTok’s size is pushed out of the market, Meta stock investors will have another reason to bid up its shares. (See six reasons to avoid Meta Platforms stock.)

 

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