Retail Investors On Stocktwits Platform Say Meta’s Instagram Biggest Beneficiary Of Potential TikTok Ban As Jan. 19 Deadline Looms Large
A Dec. 2024 Pew Research survey showed that the proportion of adults who said they would support a TikTok ban in the U.S. fell from 50% in March 2023 to 32%.
FollowChinese short-form video social-media app TikTok faces a potential ban in the U.S. as the Supreme Court, which is hearing the case, is veering toward ruling in favor of banning the app from the country. A Stocktwits poll found that in the eventuality of a TikTok ban, the Chinese app’s loss could be a gain for Meta Platform, Inc.’s (META) Instagram.
ByteDance-owned TikTok could be banned in the U.S. by the Jan. 19 deadline if the short-form video hosting service platform does not sell itself to a non-Chinese owner.
Strong Adoption
TikTok has made strong inroads in the U.S. and has become very popular, especially with young adults. A Jan. 2024 survey by Pew Research showed that 62% of 18-to-29-year-olds use TikTok, while the proportion of users among adults ages 65 and older is 10%.
A December 2024 survey showed that the proportion of adults who said they would support a TikTok ban in the U.S. fell from 50% in March 2023 to 32%. A third of the U.S. adults use TikTok, and 95% of the adult TikTok users say they use it for entertainment.
SCOTUS Favors 'Sell Or Ban'
Following more than two hours of arguments, justices of the apex court leaned more toward the sell-or-ban law approved by Congress in April on the grounds that China could use the app to spy on the U.S., posing security threats, Reuters reported. This is especially serious given that 180 million, or half of the U.S. population, use the app.
They also delved into the free speech concerns raised by TikTok's lawyers.
Buyers Line-Up
TikTok has attracted considerable interest from investors. Liberty Project, founded by former Los Angeles Dodgers owner Frank McCourt, confirmed last week that it has delivered a proposal to buy the Chinese app.
McCourt said, "By keeping the platform alive without relying on the current TikTok algorithm and avoiding a ban, millions of Americans can continue to enjoy the platform. We look forward to working with ByteDance, President-elect [Donald] Trump, and the incoming administration to get this deal done."
Shark Tank’s Kevin O’Leary has also joined the consortium to buy TikTok.
Trump, who will be inaugurated on Jan. 20, met with TikTok CEO Shou Chew at his Mar-a-Lago residence in mid-December. Despite pushing for a TikTok ban during his first term, President-elect Trump has seemingly changed his stance on the issue.
In a Jan 3 post on Truth Social, he said, ‘’Why would I want to get rid of TikTok?’’
Social media users have called on X platform owner Elon Musk to consider buying TikTok.
Retail Weighs In
An ongoing Stocktwits poll, which has so far garnered over 2,300 votes, showed that 46% of the respondents think Meta’s Instagram would be the biggest beneficiary of a potential TikTok ban. About 29% said Snap, Inc.’s (SNAP) Snapchat would benefit, while Triller (ILLR) and Alphabet, Inc.’s (GOOGL & GOOG) YouTube were mentioned by 14% and 11%, respectively.
YouTube Shorts is Google's copycat offering of TikTok, while Meta's offering is called Reels and is available on its flagship apps, Facebook and Instagram.
On Meta's third-quarter earnings call, CEO Mark Zuckerberg said Instagram's global growth remains strong. ''On Instagram, Reels continues to see good traction and we’re making ongoing progress with our focus on promoting original content, with more than 60% of recommendations now coming from original posts in the U.S.,'' he said.
Meta stock has added 5.2% so far in 2025, on top of its 66% jump in the past year.
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