Recent news highlighted TikTok CEO Shou Zi Chew’s efforts to combat the potential ban on the app in the US. Bernstein, a private wealth consulting firm, suggests that leading tech companies such as Meta, Google, and Snap could see significant advantages if the ban is enforced. They are likely to experience a surge in stock prices and a substantial increase in daily users. Additionally, the market might witness the emergence of TikTok-like clone apps, though not to the extent seen in India.
Utah has implemented two laws requiring parental permission for children to access social media due to concerns about potential harm from TikTok. However, the primary worry for the US government revolves around the allegation that the ByteDance-owned app shares user data with the Chinese government. Shou Zi Chew is working to demonstrate that TikTok operates independently and is not under Chinese government influence.
Bernstein’s analysis indicates that in the event of a TikTok ban, users will seek alternative platforms for content consumption and engagement. Potential beneficiaries could include Meta, Snap, Google, and even a return to YouTube for some users. Furthermore, companies advertising on TikTok might redirect their efforts to these alternative platforms to mitigate the loss of a substantial audience.
In terms of usage statistics, Bernstein reports that TikTok users collectively spend around 2.8 trillion minutes annually on the platform, with approximately 150 million users in the US alone. TikTok ranks second for average daily minutes per user, following Netflix. This data suggests a significant level of engagement on the platform.
Despite Bernstein’s belief that a TikTok-like replacement surge similar to what happened in India is improbable in the US, the potential for new apps to capitalize on TikTok’s absence remains a possibility. Many developers may seize the opportunity to fill the void left by TikTok’s potential ban.
Ultimately, the outcome of a TikTok ban and its aftermath will need to unfold before the full impact on the market can be assessed.
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