When it comes to TikTok’s future in the U.S., Trump’s stance is teetering back and forth like a carnival ride. One minute, he’s ready to go full Judge Judy on TikTok, calling it Beijing’s favorite spyware. The next, he’s hedging, probably thinking, “If TikTok’s gone, am I just handing Zuckerberg the keys to the social media kingdom? After all, the guy did kick me off Facebook.”
But apparently, all beef can be grilled at Mar-a-Lago. Zuck recently popped by Trump’s Florida palace, showed off his Ray-Ban smart glasses, and likely made his pitch for how Meta could “help” with tech policy.
Zuckerberg’s motive here is simple. TikTok’s demise could mean Meta’s dominance. With TikTok boasting 170 million U.S. users and a valuation hovering around $220 billion globally, there’s a lot of moolah up for grabs. Meta’s already licking its chops as TikTok creators, ad dollars, and users brace for a potential ban.
And as Trump gets ready to make a decision that could tank TikTok… Wall Street and Silicon Valley are both holding their breath.
TikTok’s owner, ByteDance, is caught in a geopolitical squeeze play. U.S. lawmakers fear TikTok’s ties to China could mean your lip-sync videos are secretly boosting Beijing’s propaganda machine… or worse, leaking user data to the Chinese government. Tik Tok denied all allegations, and there’s zero proof it’s being used for spying. But ByteDance refusing to sell TikTok’s algorithm is not helping their case.
Last week, a federal appeals court ruled against TikTok, saying ByteDance either sells the app or faces a ban. January 19 is now the official doomsday for TikTok unless the Supreme Court rides in on a white horse. If TikTok is worth $220 billion today, imagine how fast that valuation will sink if the U.S. shuts the door.
And if TikTok does get the boot, Meta’s victory party will be one for the books. Instagram Reels (Zuckerberg’s TikTok knockoff) is already thriving, gobbling up 50% of Instagram users’ time. Meta’s recommendation AI is so good it practically knows what you want before you do (creepy, but effective). When TikTok’s influencers and ad dollars inevitably flee, Reels will be there with open arms… and Zuck’s bank account will get even fatter.
Meta stock, which has already shot up 77% this year and nearly tripled in 2023, could keep climbing. The company is valued at $1.6 trillion, and it’s been riding high on the “Year of Efficiency,” cutting jobs and streamlining operations.
If TikTok folds, analysts expect Meta’s ad revenue to surge. Some experts are even calling Meta stock a solid buy for 2024. Between its dominance in social media, AI investments, and a potential TikTok windfall, Meta’s looking like a good long term play for investors.
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Stock.News has positions in Meta mentioned in article.
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