Snap's stock price rose significantly, and the CEO stated that the ban on TikTok has benefited their business.

According to the Beijing News, on February 4th local time in the United States, the social media company Snap Inc. released impressive financial data. CEO Evan Spiegel revealed during the earnings call that the uncertainty of TikTok’s future has brought positive effects to Snap.

Snap’s fourth-quarter financial report shows that its daily active users reached 453 million, an increase of 39 million from the previous quarter. Revenue reached $1.55 billion, higher than the $1.36 billion in the same period last year. Influenced by the financial report data, Snap’s stock rose more than 4% after hours.

Snap announced its fourth quarter financial report, and its stock price rose more than 4% after hours.

Spiegel pointed out at the meeting that during the brief closure of TikTok, the activity of Snapchat users has significantly increased. He also acknowledged the regulatory risks TikTok faces in the US market, which has had a positive impact on Snap’s business.

Speigel said, “The overall uncertainty of the environment has brought benefits to our business. Advertisers are working on emergency plans to diversify their advertising channels; creators are also brainstorming on how to establish more diverse interactions with fan communities on various platforms, including Snapchat.”

In recent years, the rise of TikTok has posed a challenge to top social media platforms in the United States, including Facebook, YouTube, and Snapchat. Since 2019, TikTok has seen a significant increase in its audience size; meanwhile, Snapchat’s user growth curve has started to slow down.

In November 2020, in response to competition from rivals, Snapchat launched a Spotlight feature similar to TikTok, encouraging users to share short videos and snaps. Some industry insiders have referred to Spotlight as a “bootleg version of TikTok.” Subsequently, according to media reports, Snap has frequently poached executives from TikTok to expand the team for Spotlight’s user growth project.

TikTok faces a ban threat in the US, which brings great development opportunities to Snap, Meta, Google and other companies. If TikTok is ultimately closed in the US, the aforementioned social media companies are likely to benefit from it. Currently, some creators have begun to reassess the platforms to invest time and accumulate audiences, and advertisers are also looking for stable TikTok alternatives due to the potential ban of TikTok.

The uncertainty of TikTok has not only affected social media platforms such as Snap, but has also benefited some AI and national security companies.

On February 4th, Palantir, a technology company specializing in big data, saw its stock price soar by about 24%, reaching a new all-time high.

Palantir announces fourth quarter financial report, stock price soars nearly 24%

Palantir mainly serves the US military and financial institutions, vigorously promoting the “China threat theory” in an attempt to profit from it. Many US government officials, lawmakers, and business figures who strongly advocate for the ban on TikTok also have close ties to Palantir. Mike Gallagher, the proposer of the “sell or ban” TikTok bill and a former congressman, received the most donations from Palantir during the 2023-2024 election cycle. After successfully promoting the bill, Gallagher left Congress early for personal reasons and then quickly joined Palantir.

(Source: 21st Century Business Herald)

Source: East Money

Author: 21st Century Economic Report