The Nasdaq-100 futures contracts are losing money as Facebook, the parent company of Meta Platforms Inc., plunges in premarket trading due to poor results. That scenario recently triggered the technology stock selloff on Wall Street. TikTok is giving most social media platforms tough competition. In this video, Bloomberg’s Emily Chang discusses the earnings of social media platforms with Mitchell Green, Lead Edge Capital Founding Partner. Green believes Facebook has some underlying problems. He states how Instagram and Facebook are rapidly losing their subscribers to TikTok. Therefore, these platforms are actively adopting TikTok’s features of bite-dance or short videos to remain competitive.
Demographics indicate that 20- to 30-year-olds spend most of their time watching bite-dance on TikTok compared to other platforms. So, he anticipates more pain in store for other social media platforms. That has essentially made it imperative to shift the ad spending to a more audience-focused platform. Meanwhile, TikTok is still in an expansion mode, and there is a lot of room to scale up its business. Furthermore, he discusses the dynamics of this successful Chinese tech company. They plan to list TikTok in the Hong Kong stock market to take advantage of global connections. Researchers predict an incremental share purchase demand of anywhere between 6 to $25 billion from the company’s home turf – China.
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