Social Media Shake Up

Influencing our daily lives is not enough, social media is now calling to make some movements in the stock market. The power social media has on consumers is something we are all aware of, and CEOs do their best to expand on social media. Mark Zuckerberg is a prime example of this, as he plans to release a new app in the near future to compete with the viral Tik Tok app. The app will be known as Instagram Reels and will allow users to make and edit 15 second videos. Its not unusual that Facebook (FB) is working on an app to compete with Tik Tok, as the young app has experienced incredible success. What is an even greater benefit to Facebook is that the life of Tik Tok may be in danger as its ties to China have lead to rumors that it might be banned in America. If Tik Tok gets wiped while Instagram Reels gets released (it is currently beta testing in countries such as France, Germany, Brazil, etc.) Facebook’s stock could get a considerable boost.

As we pay close mind to the revenues of companies during earnings season, one social media player to watch is Snap Inc. (SNAP). The owners of the wildly popular app Snapchat are set to announce their earnings after market close Tuesday. Despite a small expected drop in share value from Wall Street, analysts believe that Snap can beat expectations. Snap is none for reacting strongly to its earnings announcements, so a big move in the stock in either direction is expected to come tomorrow.

-Darnel Shillingford

Leave a Reply

%d bloggers like this: