Instagram Stages Remarkable Comeback, Fending Off TikTok Threat And Criticism From Kim Kardashian, Kylie Jenner
Portfolio Pulse from Rounak Jain
Instagram, owned by Meta Platforms Inc. (NASDAQ:META), has made a significant comeback, outperforming TikTok in app downloads and user engagement in 2023. Instagram's downloads increased by 20%, surpassing TikTok's 4% growth, with total downloads of 767 million versus TikTok's 733 million. The resurgence is attributed to the introduction of Threads, a Twitter competitor, and improvements in Reels content. Despite criticism from high-profile users like Kim Kardashian and Kylie Jenner, Instagram has adapted its feed to feature more suggested posts and Reels. However, concerns about Instagram's innovation for long-term success remain. Meanwhile, TikTok faces potential U.S. ban legislation, which could impact its operations.
March 19, 2024 | 2:07 pm
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Meta Platforms Inc., the parent company of Instagram, has seen its subsidiary make a significant comeback against TikTok, with a 20% increase in app downloads in 2023. This resurgence, driven by Threads and Reels, positions Instagram favorably in the social media landscape despite a 3% drop in Meta's stock price.
Instagram's remarkable performance in 2023, including surpassing TikTok in app downloads and the successful launch of Threads, directly impacts Meta Platforms Inc.'s market position and investor sentiment. Despite a short-term stock price dip, the strategic moves and user engagement growth suggest a positive outlook for Meta's stock in the short term. The potential U.S. ban on TikTok could further benefit Instagram, making this resurgence particularly relevant for Meta's future performance.
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