Snap, Meta – The light after TikTok Ban
In Brief: The Rise of Snap and Meta stock price after the TikTok Ban. What is the future forecast for the two shares?
Social media is an extremely competitive industry. Remember when the three big social networks Facebook, Instagram, and Twitter were on top? TikTok had won the heart of Gen-Z, but the rest were still playing the same game.
The growing movement to ban TikTok led Snapchat to climb the social media ladder. In spite of the fact that TikTok is no longer available, online influencers are trying to find an alternative. As a result, most users are turning to other platforms that include some of the same features such as Youtube shorts, Instagram reels, and others. It is not surprising that Snap has emerged as the proverbial king of this movement due to the reverse halo effect that has benefited it so much.
As part of its national security strategy, the U.S. government is considering banning TikTok, among others. Further, there are signs that the government wants to ban moves from Chinese companies designed to prevent “…U.S. capital and expertise from being exploited in ways that threaten U.S. national security while not placing an undue burden on U.S. investors and businesses.”
Snap Inc (SNAP)
With that in mind, Snap’s investors got excited and sent SNAP shares soaring as the share had risen 15.27% to $11.66 in a span of 5 trading days period.
Analyst consensus had rated the share as ‘Hold’ with an average price target of $10.63, an 8.63% downside risk. Along with a high forecast of $15.00 and a low forecast of $7.00. As for technical, Snap’s Moving Averages Convergence Divergence (MACD) indicator is -0.05, suggesting Snap is on a ‘Buy’ call while its Relative Strength Index (RSI) is 53.59, creating a ‘Neutral’ signal.
Meta Platform Inc (META)
Nonetheless, as TikTok influencers migrate their content to Instagram Reels had sent Meta along for the ride. Within five trading days, Meta’s stock price rose 7.57% to $184.90.
Analyst consensus had rated the share as ‘Moderate Buy’ with an average price target of $215.20, an 16.39% upside risk. Along with a high forecast of $285.00 and a low forecast of $110.00. As for technical, Meta Platforms’ Moving Averages Convergence Divergence (MACD) indicator is 6.37, suggesting Meta Platforms is a ‘Buy’ while its Relative Strength Index (RSI) is 68.46, creating a ‘Neutral’ signal.
However, the move to ban TikTok in the US is not as easy as it seems. As there are not only influencers but employment that need to be considered. TikTok U.S which was based in Los Angeles, CA consists of 8,424 employees. Not only that, TikTok had been a strong advertising hub that might jeopardize other companies’ marketing movement as well.
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