“But you can’t handicap this kind of outcome until it happens,” he said.Since then, we've seen apps like Snapchat, Instagram’s Reels feature, and TikTok fill its void. He sees Meta as the biggest winner of a ban, given Reels is a similar service to TikTok. “Removing a prime competitor would obviously give a significant boost to everyone in the sector, since you’re talking about eyeballs and time that would get redeployed,” said David Katz, chief investment officer at Matrix Asset Advisors.

as the biggest winner, as its content-recommendation algorithm and revenue sharing model could shift TikTok content creators toward its YouTube platform. analysts is outpacing TikTok for user attention thanks to its Reels service.īloomberg Intelligence sees Google-owner Alphabet Inc. Meta is increasingly focused on short-form video content, and according to Citigroup Inc. emerging as platforms with ad-supported subscription tiers for streaming video.Īgainst this backdrop, Snap forecast its first ever quarterly revenue decline earlier this year, in what represented its third straight disappointing update.Īnalysts expect an 85% drop in adjusted earnings this year, compared with 40% growth at Meta, according to estimates compiled by Bloomberg.Įven in the event of a TikTok ban, Snap may not be best-placed to benefit, despite both catering more for younger users.

Their wariness recognizes both the impact on ad spending of a bleaker economic outlook and ever fiercer competition, with Netflix Inc. Fewer than 20% of analysts recommend buying the stock, having slashed estimates for earnings and revenue over the past three months. While Snap cut about a fifth of its workforce last year, caution remains high. and a 4.4% decline in Meta, the Facebook parent that has regained Wall Street’s favor in recent months with aggressive cost reductions, including multiple rounds of layoffs that prompted a Morgan Stanley upgrade this week. The stock’s 68% drop over the past year compares with a 7.8% gain in Pinterest Inc. Snap, and particularly its investors, could use such a boost.

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