From TikTok to Tech Stocks, the technology and social media landscape continues to be defined by rapid change and intense competition. In recent weeks, one of the hottest stories centers on TikTok’s future in the United States following a major policy shift. According to The Information, the U.S. TikTok entity is on track for a surprisingly low valuation of about $14 billion, a fraction of its parent ByteDance’s $337 billion tag. This dramatic shift follows President Trump’s executive order, signed on September 25th, to facilitate American ownership of TikTok’s U.S. operations. Oracle co-founder Larry Ellison and other investors look set to be part of the new consortium, with ByteDance expected to retain a minority stake.

The reverberations are being felt across the tech stock universe, especially among publicly traded social media giants. Meta Platforms, the parent of Instagram and Facebook, is a prime example. Meta’s Instagram recently celebrated a milestone: 3 billion monthly active users, amounting to roughly 37% of the global population. It’s a testament to how far Meta has come since acquiring Instagram in 2012, when the platform had just 100 million users. Over these 13 years, Meta’s stock has soared by some 1,800%. Despite this success, executives at Meta are voicing concern about TikTok’s influence. Adam Mosseri, Head of Instagram, noted during an ongoing antitrust trial that TikTok represents “the fiercest competition we’ve faced.” In fact, Mosseri cited that TikTok contributed to as much as 40% of the decline in Instagram usage back in 2019.

At the Morgan Stanley Technology Conference in May, Meta’s Chief Product Officer Chris Cox outlined plans to reinforce Instagram Reels as a major contender in the short-form video space. Buffer reports that Reels reach over 122% more users and generate 91% more engagement than single-image posts. Meta is piloting a TikTok-style Reels-first layout in South Korea and India, a move intended to boost both user engagement and advertising revenue.

Oddly enough, markets have responded with relative calm to these seismic developments. Meta’s shares dipped just 1% the day after Trump’s TikTok order, and were only down 3% through October 2nd. Analysts suggest investors aren’t ready to turn bearish on Meta, predicting a continued upside if Instagram’s TikTok-inspired changes deliver results. Still, TikTok’s new U.S. ownership and shifting priorities in short-form content remain vital wild cards for tech stock investors.

With TikTok poised to change hands and established giants like Meta adapting at lightning speed, listeners are witnessing a pivotal moment in social media history—one that could shape tech stocks for years to come.

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