US Reporter

TikTok rises as other social media companies’ shares dip

The stocks of major social media companies have been dropping this year.

With the recent changes made by Facebook CEO Mark Zuckerberg, like his metaverse plans and rebranding of Facebook to Meta, there is uncertainty about how this could affect their shares. So far, the shares of the company have already sunk 40% this year.

Without their COO, Mark Zuckerberg will be left to navigate through the company’s transitions and challenges. CEO Mark Zuckerberg announced last week that their COO Sheryl Sandberg would be leaving the company in July.

The stock market has been crashing this year, with Snapchat’s shares dropping 70%. Pinterest lost half its value and even media giants like Alphabet Inc., Google’s owner, experienced a 20% downtick in their stocks.

Twitter is joining other social media companies whose stocks have been hit hard in recent weeks. The company’s 11% drop sits on top of the issues of ownership that involve Elon Musk.

Even with high growth rates than traditional media companies, social media companies have come to realize that their values are still dependent on the ever-change preferences of a fickle audience.

When they drop, something rises

Millennial and younger generations are catching onto TikTok like a wildfire. The app has become popular among those age ranges because of all the different types of videos that users post on the app, which makes it very entertaining for everyone.

Media sites like Snap, Twitter and Meta are taking away Alphabet’s earnings because they are competing with it, says a Morningstar analyst. Plus, newcomers such as TikTok also pose problems for them in this industry.

With TikTok becoming more popular among company giants, it is not surprising that other companies are starting to take notice.

“We continue to focus on social platforms relevant to the younger Gen Z consumer,” said Stefan Larson, CEO of Calvin Klein. The latest craze in Calvin Klein fashion is the #onlyinmycalvins movement that has been participated by many and gained significant viewership across ten countries.

Experiencing the same, Estee Lauder’s new mascara brand MACStack got the attention of TikTok’s users. After it trended, CEO Fabrizio Freda said that their sales of the product exceeded their expectations. The video featuring the new mascara has already received tremendous attention from users on TikTok, most especially among Gen Zs and Millennials. Since its posting, the video has already garnered more than 153 million views.

Source: CNN