If TikTok is banned in the US, Meta is likely to be the biggest winner alongside YouTube and Snap, says research and brokerage firm Bernstein.
Before TikTok CEO Shou Zi Chew appeared in Congress on Thursday, the research firm said in a memo to clients that if the ByteDance-owned app is banned from the US, Meta will soon attract more users and We mentioned it could be time spent on the app. .
Chu has called repeatedly to ban the short-video app in the country, and after coming under pressure from the Biden administration to ByteDance, which would face a ban if it did not sell TikTok in the United States, came before Congress. I plan to testify in
“User moved to they already are. It’s probably an Instagram reel that the user has already watched. Most short non-TikTok videos and Spotlight on Snap for the best videos The population overlaps with TikTok, which should be a big winner,” notes the note.
Meta, Google and Snap could see their earnings skyrocket in the absence of TikTok, which could possibly benefit their stocks as well, Bernstein said in the memo. TikTok’s projected US revenue was expected to be around $7 billion to $8 billion.
“advertisement Dollars are spent where advertisers are most satisfied with the highest ROI.meta again looks like the most winner in best-in-class advertising products, including SFV, while YouTube Branded campaigns have the most overlapping objectives. YouTube was also probably the biggest Share your donors to TikTok ads and the ad dollars could go home,” the memo said.
The user will be navigated to their current location. The biggest winners are probably Instagram Reels and Snap Spotlight. Bernstein
Zhu said this week that Tikok has more than 150 million users in the United States, with Bernstein estimating that those users together spend more than 2.8 trillion minutes annually on the app, giving TikTok ranks second in hours spent per day per user (52 minutes), just behind Netflix.
In 2020, India banned TikTok due to concerns over Chinese ownership and the app threatening the country’s “national security and defense”. was acquired by ShareChat), Google-backed VerSe Innovation’s Josh quickly gained users on TikTok, and international players like Instagram, YouTube, and Snap also started formatting short-videos. increase.
Bernstein said he doesn’t see a similar scenario for the rise of local TikTok clones in the US.
Given recent actions by the White House, lawmakers and federal law enforcement, Chu faces a potentially tough turn under the glare of government’s big bright lights.
Chu issued a prepared statement ahead of his testimony before Congress, saying that the idea that TikTok “benefits” the Chinese government was inaccurate.
“…we understand the concerns stemming from the inaccurate belief that TikTok’s corporate structure is indebted to the Chinese government or that it shares information about U.S. users with the Chinese government,” said Chew. said.
“This is clearly false. I assure you that ByteDance is not an agent for China or any other country.”
TikTok has spent more than $1.5 billion on Project Texas, which aims to appease US authorities regarding the safety and transparency of the app’s US operations.
The company also said that over 5 million businesses use TikTok, highlighting how the app is helping the economy. In addition, the app employs more than 7,000 people in the country. A series of creators, along with some Democratic lawmakers, are backing TikTok and protesting its possible ban in Washington, D.C.
