Meta Wants To Leverage TikTok Ban Threat to Promote Instagram On Other Social Media, Offers Cash Deals

Meta Platforms Inc META is trying to promote Instagram by exploiting the absence of the Chinese rival TikTok download option from Apple Inc AAPL and Alphabet Inc GOOG GOOGL Google stores.

In 2020, President Donald Trump threatened to ban TikTok, citing national security threats due to its ownership by ByteDance Ltd. However, recently, Trump urged the Supreme Court to delay the TikTok ban after assuming charge as the new President on January 20.

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Previously, the Biden administration ordered ByteDance to divest its ownership of TikTok or face an effective ban on the app in the U.S. on January 19.

TikTok, has 170 million U.S. users and accounts for ~4% of the U.S. digital ad market. Around 63% of teens aged 13 to 17 use TikTok compared to 59% who use Instagram, CNBC cites a 2023 Pew Research Center survey.

The Facebook and Instagram parent encouraged creators to promote Instagram on other short-form video apps, like TikTok, Snap Inc SNAP Snapchat, and Alphabet Inc GOOG GOOGL YouTube including three months of posting exclusivity by doling out attractive offers, CNBC cites from a creator contract details.

Meta’s monthly cash bonuses ranged from $10,000 to $50,000 to shift their videos to Instagram Reels, CNBC cites the Information. The deals last six months and obligate a creator to post a minimum of eight Instagram Reels per month.

Meta paid over $2 billion to content creators in 2024. Four million content creators have reportedly made money from the platform since 2017.

Meanwhile, Trump allies, including Oracle Corp ORCL co-founder and Chairman Larry Ellison and Elon Musk, emerged as eligible contenders for TikTok after Trump suspended the TikTok ban for 75 days.

META Stock Prediction For 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Meta Platforms, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Meta Platforms, the 200-day moving average sits at $536.57, according to Benzinga Pro, which is below the current price of $647.49. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Investors can gain exposure to Meta through iShares U.S. Technology ETF IYW and Global X Artificial Intelligence & Technology ETF AIQ.

Price Action: META stock is down 1.57% at $637.71 premarket at the last check on Monday.

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