Meta Platforms (META) is trying to lure content creators away from TikTok with lucrative cash bonuses.
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According to media reports, Meta Platforms has been reaching out to popular TikTok creators who have large online followings and offering them cash bonuses of up to $50,000 a month to make short videos for its social media site Instagram Reels.
The cash bonuses on offer are much more than Meta Platforms has paid creators in the past for making Reels videos. The new bonuses require creators to post their videos exclusively to Instagram, and the offers come with TikTok’s future in the U.S. up in the air.
Will TikTok Survive?
Many TikTok creators have been migrating to new social media sites on their own in recent weeks as a Jan. 19 deadline that would have effectively banned the TikTok app in the U.S. approached. Lawmakers in America have sought to ban TikTok over national security concerns and accusations that the popular short-form video app is used by the Chinese government to spy on people.
TikTok actually shutdown in the U.S. briefly on Jan. 19. However, U.S. President Donald Trump has thrown the app a lifeline, holding off on enforcing the ban for 75 days in order “to permit my Administration an opportunity to determine the appropriate course of action with respect to TikTok,” reads an Executive Order signed by Trump.
Meta Platforms launched Instagram Reels in 2020 as a TikTok copycat and added features ahead of the ban to make it even more like the Chinese app. META stock has gained 62% in the last 12 months.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 44 Wall Street analysts. That rating is based on 40 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $689.12 implies 11.79% upside from current levels.
