Social media giant Meta Platforms’ (NASDAQ:META) Instagram is rapidly making up for lost ground in its battle for subscribers with TikTok. According to the Financial Times, Instagram outpaced TikTok in new app downloads last year.
Reportedly, Instagram’s number of app downloads jumped by 20% in 2023. In comparison, ByteDance-owned TikTok clocked a 4% increase. Still, the total number of app downloads for both platforms hovered at nearly similar magnitudes of 733 million and 768 million, respectively. Instagram’s rapid gains come from its timely focus shift from photo-sharing to short-form videos. In recent times, Instagram has felt more and more like TikTok, with users racing to upload reels to boost their subscriber numbers.
According to FT, Instagram had around 1.47 billion monthly active users in Q4 2023, compared with 1.12 billion for TikTok. Notably, TikTok saw its active user base decline by around 12 million during this period. Importantly, Instagram’s appeal as a way to monetize userbase also plays a key factor in its success. On the flipside, TikTok is growing in popularity with its eCommerce solutions.
Still, TikTok has had remarkable success in a very short time. The app, launched in 2016, surpassed a billion monthly active users in 2021. Its more entrenched peers took nearly twice that long to achieve this feat. Meta, though, was never known to rest on its laurels for too long. While already seeing impressive Ad revenue trends, the company is leaning heavily on AI to ensure users stay glued to its platforms.
Is META a Buy, Sell, or a Hold?
Meta’s stock price has rallied by a whopping 178% over the past year. Overall, the Street has a Strong Buy consensus rating on Meta alongside an average price target of $528.80. This implies further gains in the stock may be modest this year.
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