The popular social media platform, TikTok, is experiencing a slowdown in user growth for the first time in its history amidst mounting pressure from Congress.
According to a report by The Wall Street Journal, TikTok's user growth has stalled, with ad sales reaching but not exceeding targets. The app's venture into e-commerce has also sparked discontent among users, while Instagram Reels, its main competitor, has been making significant strides.
Despite the challenges, TikTok's user base in the U.S. has jumped to 170 million, up from 150 million last year. The company spokesman stated, "TikTok is and continues to be the premier platform for millions of users, creators and advertisers.”
In Washington, the House overwhelmingly approved a bill that would require TikTok's parent company, ByteDance, to divest TikTok or face a ban. The bill argues that the collection of American user data by ByteDance poses a national security risk. However, TikTok has maintained that it has not and will not share user data with the Chinese government.
As the bill approaches a critical juncture in the Senate, the Chinese government has indicated that it will not allow a forced sale of TikTok, further complicating the options available for ByteDance.
The slowdown in user growth and the increasing number of people leaving the app have complicated TikTok's relationship with U.S. advertisers. The number of U.S. average monthly users aged 18 to 24 fell by nearly 9% from 2022 to 2023.
Despite these challenges, TikTok's parent company ByteDance has seen robust growth. Its revenue in the third quarter of 2023 rose 43% compared to the same period the previous year, reaching $30.9 billion.
Read Next: Elon Musk Says TikTok Bill 'Far Too Broad': 'It Will Be Abused In The Future'
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
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