fbpx

QQQ
+ 2.31
364.32
+ 0.63%
BTC/USD
+ 1438.42
62313.99
+ 2.36%
DIA
+ 3.70
345.43
+ 1.06%
SPY
+ 3.26
439.24
+ 0.74%
TLT
-0.85
146.73
-0.58%
GLD
-2.66
170.66
-1.58%

Forget Facebook, Snapchat, Twitter: TikTok Is The Breakout COVID-19 Social Media Platform

April 24, 2020 5:07 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Forget Facebook, Snapchat, Twitter: TikTok Is The Breakout COVID-19 Social Media Platform

Social media has been one of only a handful of sectors that is benefiting from the stay-at-home environment. Social distancing has forced social interactions online for the time being, but investors looking to capitalize on the surge in social media usage be surprised at the big winner.

On Friday, DataTrek Research co-founder Nicholas Colas said the biggest social media winner from the COVID-19 era isn’t Facebook, Inc. (NASDAQ:FB), its subsidiary Instagram, Snap Inc (NYSE:SNAP) or Twitter Inc (NYSE:TWTR).

Instead, teen-oriented video platform TikTok has seen the biggest surge in Google search volume over the last 90 days. TikTok is owned by the private Chinese company ByteDance.

Social Media Search Numbers

Colas said Facebook and Twitter saw only a small bounce in worldwide Google search volume since global lockdowns went into effect. In the chart below, searches for Snapchat have demonstrated a similar trend, while searches for TikTok have steadily risen over the last 90 days.

“TikTok has yet to prove it can be profitable or relevant outside its core global teen user group, but it certainly has the right entertainment product for the times,” Colas said.

Unfortunately, there’s no direct way for Americans to invest in TikTok or ByteDance.

ByteDance was reportedly valued at around $75 billion in 2018 prior to TikTok’s meteoric rise in popularity. Apptopia recently reported that TikTok’s in-app purchase revenue skyrocketed 310% in the fourth quarter, and ByteDance is rumored to be a potential 2020 IPO candidate.

Benzinga’s Take

If ByteDance eventually pulls the trigger on an IPO, investors need to tread carefully. As Snap IPO investors know all too well, popularity doesn’t necessarily translate to strong stock performance, and a younger customer base can be particularly fickle when it comes to what’s trendy in social media.

Do you agree with this take? Email feedback@benzinga.com with your thoughts.

Related Links:

Here's How Much Investing $100 In The 2017 Snap IPO Would Be Worth Today

Activist Investor Ross Gerber Says He Got Death Threats After Tweeting About Trump

Screenshot from the App Store. 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

Why Twitter And TikTok Were Big Social Media Winners In Q2

Why Twitter And TikTok Were Big Social Media Winners In Q2

Social media stocks experienced some major volatility throughout second-quarter earnings season. On Thursday, Bank of America analyst Justin Post recapped the second quarter and highlighted which social media platforms were the biggest winners. read more
'Getting Creative With Creators Is Expensive': Why 6 Analysts Lowered Their Pinterest Price Targets

'Getting Creative With Creators Is Expensive': Why 6 Analysts Lowered Their Pinterest Price Targets

Pinterest analysts are reacting to the company’s second quarter report that saw strong revenue growth but offered lower active users and third quarter guidance than expected. read more
5 Things That Could Derail The Stock Market In 2021

5 Things That Could Derail The Stock Market In 2021

The SPDR S&P 500 ETF Trust (NYSE: SPY) once again traded higher to new all-time highs on Thursday as optimism surrounding a sharp economic rebound in 2021 continues to grow. read more
4 Snap Analysts Talk ARPU Outlook, TikTok Rivalry, Apple Privacy Changes

4 Snap Analysts Talk ARPU Outlook, TikTok Rivalry, Apple Privacy Changes

Snap Inc (NYSE: SNAP) shares were moving to the downside Friday following the release of the social media platform's fourth-quarter results. read more