Investing

Meta (META) Is the Clear Winner From a TikTok Ban, but It Could Get Expensive

Austin Smith

Published: December 20, 2024 10:36 am

24/7 Wall St. Key Points:

• Unless ownership moves to a local firm, a court decision maintaining a TikTok ban in the United States presents Meta Platforms (NASDAQ: META) a possible chance to grab TikTok’s younger user base through Instagram.
• Although TikTok’s huge U.S. user base (170 million) makes it a very valuable tool, acquisition by U.S. firms could encounter financial and legal obstacles.
• While TikTok is on shaky footing, The Next Nvidia stocks are soaring. Learn more about the next AI stocks that could go parabolic in 2025.

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Transcript:

[00:00:00] Douglas McIntyre: TikTok is facing a ban. First it was legislation signed by president Biden. TikTok is, is smart. Took it to the courts. Recently the court of appeals, said tough luck. We’re not overturning anything. It’s, it’s gotta, it’s gotta, it’s gotta be shut down

[00:00:21] Lee Jackson: we’re getting a buyer here. Right.

[00:00:24] Douglas McIntyre: to a U. S. Owner. Now, to me, the winner, if that happens, is, is Meta

[00:00:32] Lee Jackson: Oh, absolutely.

[00:00:33] Douglas McIntyre: You got all of a sudden Instagram, which is I don’t know, sort of a third wheel in that world, particularly since TikTok is so hot right now. I look for Meta stock to take a jump if that happens because of the Instagram effect.

[00:00:51] Lee Jackson: Yeah. And you would think you would think because you know, TikTok really skews to a younger demographic. I mean, obviously Facebook skews older and Instagram kind of goes through there, but you would think you you would think that that that. Zuckerberg would take a swing at buying TikTok, but they would never allow that.

[00:01:14] Lee Jackson: But, you know, it would have to be somebody else. But you would think that they would maybe even try to come up with something that’s a little more lively and kid oriented and, you know, something that goes down the TikTok road. Because you would think that other big tech companies would buy them in a heartbeat.

[00:01:32] Douglas McIntyre: I would agree with you, but I, I believe that it will be expensive. I mean, I think it’s, it’s going to be a big ticket

[00:01:39] Lee Jackson: no doubt it will be. Byte dance is not going to give it away.

[00:01:43] Douglas McIntyre: No, they have now they will keep the stuff overseas, but,

[00:01:46] Lee Jackson: Right.

[00:01:47] Douglas McIntyre: they have a billion, TikTok subscribers or whatever they are, and they have about 170 million of those

[00:01:54] Lee Jackson: In the U. S. Yeah.

[00:01:56] Douglas McIntyre: So it is very valuable. and just keep an eye on it, folks. If, if the TikTok thing comes down to the wire, it is very good for meta.

[00:02:08] Douglas McIntyre: Right.

[00:02:10] Lee Jackson: Yeah. And again, who, who else could toss in there? Who would have the deep pockets to buy it? They’re the, the U. S. version of it. And would it be big tech would, it would almost have to be a player that’s not in that social media sort of game now. And do we get to the point where, the US turns to like Australia where there are restrictions on teenagers using social media platforms?

[00:02:39] Lee Jackson: ’cause you know, Australia’s I think you have to be 16 after the new law they passed to, to look at a TikTok or something

[00:02:47] Douglas McIntyre: You can’t use it at all.