meta gen tiktok spotify blend genshawbloomberg

We have already seen this in India where the app was banned after concerns were raised over the close partnership of its parent company ByteDance with Chinese regulators. Source: eMarketer, Techcrunchīut TikTok's popularity can also lead to its downfall. The concerns of Facebook's management about TikTok's growth have been accepted by Wall Street which has been a big reason behind the bearish sentiment towards the stock.įigure 1: TikTok's userbase compared to Facebook, Instagram, Snapchat, and Twitter. During the recent earnings, TikTok was mentioned 5 times compared to Instagram which was mentioned 11 times. Facebook's management has been quite vocal about the challenge from TikTok. This is a staggering growth trend that can even lead to its surpassing Instagram usage in the near term. The app grew by 59.8% in 2020 and 40.8% in 2021 according to these estimates.

Challenge from TikTokĪccording to a recent report by eMarketer, TikTok has close to a billion social network users worldwide. or EU could build a strong bullish sentiment towards Facebook stock. The decline in growth rates from TikTok or a major regulatory reversal in U.S. The challenge from TikTok is quite significant for Facebook but Wall Street has underestimated the ability of the company to mount a counter-offensive. We could see Facebook becoming the lesser of the two evils and a better social media alternative for regulators in important regions. EU is also increasing the pushback against TikTok as the app gains greater popularity in the region. The federal oversight over TikTok will only increase in the near term. regulators are opting to not ban TikTok outright but have opened a wider investigation on the impact of such apps. This was the main reason behind the ban of TikTok in India after border issues with China increased in 2020. One of the biggest headwinds for TikTok will be the close partnership of its parent company ByteDance with Chinese regulators.

But TikTok also faces a number of challenges. Recent reports suggest TikTok has over a billion users and has crossed a valuation of $400 billion.

However, the exact long-term impact of TikTok on Facebook is overhyped due to numerous regulatory and data issues faced by TikTok. Meta Platforms ( FB) is facing significant headwinds from TikTok and the management has been quite vocal about this. Fritz Jorgensen/iStock Editorial via Getty Images

Meta gen tiktok spotify blend genshawbloomberg