From Nasdaq: 2024-04-28 14:23:00

President Biden signed H.R. 815 into law, allocating $95.3 billion for foreign aid and threatening to ban TikTok by Jan. 15, 2025. Meta Platforms (NASDAQ: META) stands to benefit from the ban, while Alphabet (NASDAQ: GOOG, GOOGL) may gain without TikTok as a competitor, given its rapid growth and threat to Google and YouTube.

TikTok’s worldwide reach of 1.5 billion monthly users posed a significant challenge to Meta and Alphabet. With 148 million MAUs in the U.S., TikTok’s rise fueled Google’s launch of YouTube Shorts. The competition between TikTok and established tech giants was evident, with TikTok even serving as a video-driven search engine for younger users.

The ban on TikTok could impact Alphabet’s stock by removing a key competitor, but its recent revenue growth suggests sustainability. While a ban may drive users to YouTube Shorts, the impact on ad sales may be limited. Investors should focus on Alphabet’s overall business growth, new buyback plans, dividend offerings, and stock valuation for long-term success.

Considerations about investing $1,000 in Alphabet should account for recent stock performance and analyst recommendations. While potential competition from TikTok is a factor, Alphabet’s track record of success and strategic initiatives present compelling reasons to consider investing in the company. Stock Advisor provides valuable insights and recommendations for long-term investment strategies.



Read more at Nasdaq: Does the TikTok Ban Make Alphabet Stock a Buy?