Can Meta Platforms' Fastest-Growing Content Format Revitalize its Stock Price?
TikTok has quickly risen to social media superstardom. In 2018, the app surpassed Meta Platforms' (NASDAQ: META) Messenger, Facebook, and Instagram in overall mobile downloads, according to SensorTower. It was arguably that moment when Meta CEO Mark Zuckerberg recognized TikTok as a rising threat.
However, it took Wall Street a bit longer to catch on to the extent of the threat TikTok posed to Meta's family of apps. In Meta's earnings report for fiscal year 2021, the company revealed that it lost one million daily active users between the third and fourth quarters. While that might not seem like much, it was the first time in the platform's history that user numbers declined. .
During the accompanying earnings call, Zuckerberg explicitly mentioned TikTok as a quick-growing competitor for users' attention. He also emphasized the importance of Reels, Meta's own short-form video product, in attracting business from young adults.
Source Fool.com
