![]() ![]() TikTok is digital fentanyl that’s addicting Americans, collecting troves of their data, and censoring their news. Some of the quotes are alarming including the description by U.S. Heads of the Central Intelligence Agency and the FBI are both on record stating TikTok is a genuine concern for national security. The fear is that the Chinese government is data-mining the app to spy on Americans and using content algorithms to influence opinion. ![]() While it may be controversial for some to believe that " TikTok is dangerous", that's exactly what lawmakers are explaining. TikTok has been in the crosshairs of regulators considering its Chinese control and the evolving impact of social media. We believe META is undervalued and has an upside from current levels. In our view, any outlook for Meta needs to incorporate this very bullish case which would be a game-changer in terms of both near and long-term earnings potential. In this regard, we would expect a boom in Meta user metrics and sales as content creators and advertisers migrate their time and spending. Recognizing the still remote possibility the app actually gets pulled from the U.S., in what would be a historically unprecedented step facing backlash, Meta Platforms likely stands to be a major winner from such a scenario. and other countries on the grounds of security and data privacy issues. That said, investors need to be closely following the headlines on what are growing calls to outright ban TikTok in the U.S. The Chinese app has been a sensation with key demographics translating into impressive user growth worldwide. The other dynamic at play considers the emergence of rival "TikTok" which has captured a climbing share of video content representing intense competition to Facebook and Instagram. The surge of spending toward R&D has hit earnings with little progress in driving new growth while shares of META are down more than -65% in 2022. Thus far, the decision has been widely seen as a disaster coinciding with what was likely peak exuberance in the segments of new technologies like 'Web3'. It's been just over a year since Meta Platforms Inc ( NASDAQ: META) officially changed its name from 'Facebook', signaling an ambitious strategy to focus on opportunities in the virtual economy beyond social media. ![]()
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