Mark Zuckerberg stands to gain from TikTok’s U.S. ban: Meta could reap billions in ad revenue, analysis shows – Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Yuan Platform Company Mehta According to reports, if Tik TokThe popular social media platform was banned from US app stores this Sunday.

what happened: TikTok’s legal team has warned that the app could be “shut down,” cutting off existing users’ access to videos. An eMarketer analysis on Friday showed that such a ban would severely impact one of the largest social media platforms in the United States, potentially unlocking billions of dollars in advertising revenue and user engagement, Business Insider reported.

Analysis shows that TikTok’s advertising revenue in the United States in 2024 will be $12.34 billion. Meta, the parent company of Facebook and Instagram, is expected to take a sizable share, potentially capturing $2.46 billion to $3.38 billion in advertising revenue.

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Morgan Stanley analysts also predict Mark ZuckerbergWith its broad user base and strong data capabilities, the company will be “the biggest fundamental winner from any TikTok ban.” They estimate that such a ban could boost Meta’s fiscal 2026 earnings per share by 5% to 9%.

Instagram is expected to account for most of the time U.S. users currently spend on TikTok. According to EMARKETER, by 2024, US TikTok users will use the app for nearly an hour a day on average, and nearly 75% of them are also active on Instagram.

While Meta is poised to reap maximum benefits, alphabet inc. Google Google Google’s Youtube and Snap Inc. break Snapshot TikTok’s absence may also be a benefit.

why it’s important: U.S. Supreme Court A ruling upheld on Friday that TikTok will be banned in the country unless the parent company Byte bounce Sell Close some operations in the United States. The decision was based on “well-supported national security concerns” about TikTok’s data collection practices and its ties to foreign adversaries,

Ross GerberCEO Gerber Kawasaki Wealth and Investment ManagementIt also called for a ban on TikTok, calling it a “national security risk” and reports that Musk Might buy it.

Despite the uncertainty, the looming ban is already having an impact. With VPN searches soaring 800% as users seek solutions, TikTok has announced plans to cease operations in the United States, but users can still download profiles.

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