Stocks

Potential Gains for GOOG and META in the Event of a TikTok Ban

Published May 9, 2024

The digital landscape is abuzz with speculation following the U.S. government's endorsement of a potential ban on TikTok. Should this popular social media platform be prohibited, significant benefits may be on the horizon for some of its major competitors. For investors, this development presents an intriguing scenario where understanding which companies stand to gain can lead to strategic investment decisions. With the possibility of TikTok's absence in the market, two stocks, in particular, emerge as likely beneficiaries: Alphabet Inc. GOOG and Meta Platforms, Inc. META.

Alphabet Inc. GOOG Poised to Benefit

Alphabet Inc., known worldwide as the parent company of Google, operates one of the most expansive digital ecosystems. Founded on October 2, 2015, through a restructuring that saw Google evolve into a holding company, Alphabet has since overseen various subsidiaries that offer a suite of Internet-related services and products. With TikTok's potential exit, Alphabet could leverage its extensive video platform YouTube, and other resources, to attract TikTok's sizable user base. As a dominant force in technology and one of the most valuable companies globally, GOOG's stock is likely to receive a boost from any reduction in competition.

Meta Platforms, Inc. META Set to Capitalize

Based in Menlo Park, California, Meta Platforms, Inc. is at the forefront of social networking, enabling users worldwide to connect and share content across various devices and platforms. Formerly known as Facebook, Inc., Meta has long been a keen player in the social media arena. The potential eradication of TikTok from the U.S. marketplace presents an opportunity for Meta to redirect TikTok users towards its own platforms which include Facebook and Instagram. As investors observe the developing situation, the stock of Meta Platforms META surfaces as a strong contender for growth in a market reshaped by legislative actions against TikTok.

Investment, SocialMedia, Technology