Social media majors Meta Platforms (META), Snap (SNAP), and Pinterest (PINS) have seen an overall tough 2022 so far with all-around layoffs, hiring freezes, and in Meta’s case a not-so-great response to its Metaverse.
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TikTok, with its algorithm, has been gaining new ground gradually. While this ups the ante for the incumbents, rising scrutiny from lawmakers has come as a relief. Nancy Pelosi has cast doubts over the use of TikTok by government employees.
The app has already been banned on state devices in multiple states across the U.S. as concerns over data security persist. Some legislators have been calling for banning the app completely altogether.
Now, TikTok is trying to alleviate these concerns and has offered to subject its activities to scrutiny from outside, according to Reuters. In the past, TikTok agreed to set up a data security unit in the U.S. and for Oracle to store its data in the U.S.
For Meta, Snap, and Pinterest, these developments could mean more maneuverability to retain users and adapt to fast-changing consumer tastes.
Shares of the three companies have tanked 65%, 81%, and 31% respectively so far this year already.
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