24/7 Wall St. Key Points:

• A U.S. TikHub ban would probably help Meta Platforms Inc. (NASDAQ: META), since it would remove a significant rival for Instagram and Threads, therefore increasing Meta’s market share.
• ByteDance might think about selling TikHub to a big American tech giant such as Alphabet Inc. (NASDAQ: GOOGL), Microsoft Corp. (NASDAQ: MSFT), or Amazon.com Inc. (NASDAQ: AMZN), although a transaction could surpass $200 billion.
• Younger groups’ regulatory monitoring of social media use could affect TikHub’s valuation and user expansion, therefore generating uncertainty for possible buyers.
• While Meta and TikTok unfolds, the smart money is loading up for The Next Nvidia stocks for 2025. Click here to see the investments that have everyone so excited.

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Transcript:

[00:00:04] Douglas McIntyre: Let’s look at something with metaphor for a minute. So TikTok, depending on what the Supreme court says, TikTok could be out of the United States. I mean, they

[00:00:15] Douglas McIntyre: somebody here, but if you’re meta and you own Instagram, the best news you can possibly get is that the Supreme court in essence sided with TikTok. President Biden and the Congress and says they’re out because you now suddenly have the one company that really hurts you going away. So when I look at Meta’s share price, liking Meta on a TikTok ban,

[00:00:44] Lee Jackson: yeah. And I think, you know, oddly enough, Trump has kind of reversed on this because, he admitted that he had a lot. You know, one of the biggest reasons that helped him get across the finish line this time was younger voters. He ran a ton of ads on TikTok. So he’s starting to think, Oh, maybe it, it isn’t so bad.

[00:01:07] Lee Jackson: And maybe we can get bite dance to, you know, sell it to meta or somebody like that, and it’ll be interesting to see what happens because, you know, this is all Biden driven and, or whoever. Tells him what to do driven and it’s extremely popular, but the demographic is is much younger for TikTok.

[00:01:28] Douglas McIntyre: right? Which some advertisers like. I mean, some

[00:01:32] Douglas McIntyre: you’re, if you’re want to aim towards that age group. You know, demographically, it’s better than Instagram. It’s better than threads. I mean, there,

[00:01:40] Douglas McIntyre: Yeah,

[00:01:41] Douglas McIntyre: people who try to try to compete in that space, but, you know, who wouldn’t buy TikTok if you think about it for a second. Meta is really the only, you got snapshot. I mean, you’ve got some of these small companies that can’t afford to buy TikTok,

[00:01:58] Douglas McIntyre: even

[00:01:59] Lee Jackson: it’s not as a lot of that demo. You’re right. You’re right. You’re right.

[00:02:02] Douglas McIntyre: is that, you know, TikTok is probably worth a quarter of a trillion dollars. So you’re, you’re not gonna get. A medium sized to small social media company. That means that you’ve got to look to the really huge tech companies and ask strategically who can use TikTok. Is it Google? Is it Microsoft? I mean,

[00:02:26] Douglas McIntyre: who

[00:02:27] Lee Jackson: Amazon.

[00:02:28] Douglas McIntyre: Is it Amazon?

[00:02:30] Douglas McIntyre: Yeah. It’s interesting when you talk about if big tech would say, Hey, we’ll buy them. You know, who would it be? Because I think if, if, if ByteDance could make a deal with some big tech player that, that, The Trump would probably be okay with that. And, and probably, you know, so with the Supreme court, you know, I think they’re going to kick this can down the road a little bit longer and wait till he gets into office and, and, you know, kind of see, test which way the wind is blowing, but yeah, it’s a very valuable asset and boy, Google may need it.

[00:03:09] Douglas McIntyre: Well, you know, if, if I were an investor right now who was interested in the really big techs, I would go through the list. It’s not a long list. You know, it’s maybe four companies. It’s

[00:03:21] Lee Jackson: Yep.

[00:03:22] Douglas McIntyre: Google, Microsoft. I don’t know. It’s not, it’s not Apple. ask yourself, if I’m going to make up a number, if one of them pays 200, 000, Billion dollars, which is I think is is what it would take to get that.

[00:03:38] Lee Jackson: Oh God.

[00:03:39] Douglas McIntyre: But is that good? I understand that it might get done because strategically a company wants the customers, know, it’s sort of like buying linked in on a much larger scale.

[00:03:51] Lee Jackson: Yeah,

[00:03:52] Douglas McIntyre: If I own one of those big tech stocks, I would ask myself if they buy TikTok, what does it do to the stock? Is it good or is it bad?

[00:04:02] Lee Jackson: I would think it would be. I mean, they’re all so cash rich now that and like you said, 200 billion is not something that a lot of people have that much cash except Buffett. And I don’t see Buffett buying TikTok. No, I don’t think so. But, yeah, I mean, they, they are They are cash rich, all of them. And for the most part, debt free to some degree.

[00:04:26] Lee Jackson: I mean, they certainly don’t carry the kind of debt that, you know, because it’s just not labor and cost intensive as much. But yeah, I think it’s going to be interesting. And, you know, I think there’s more and more. There’s going to be, there’s going to be some clamps put on. Kids on social media. you know, it’s, it’s already started in certain states.

[00:04:49] Lee Jackson: You know, you gotta be 14 or I think they’re doing something in Florida. You know, Australia has put a hard ban on you know, teenagers using social media. So it’s, it’s going to be interesting to see how that plays out as well. Because as we were saying, as you pointed out early on that the, the TikTok demo is much younger, you know, it’s dancing girls and crazy stuff like You know, but

[00:05:16] Douglas McIntyre: great.

[00:05:17] Lee Jackson: it’s, it’s real good and it’s worth a lot.

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