Social media platform TikTok is preparing to challenge Instagram (NASDAQ:META) in photo-sharing by developing its own app (TikTok Notes) for images and text. This is part of a broader trend in the social media market, where platforms tend to copy successful features from their competitors. Meta Platforms is especially known for doing this.
TikTok’s move comes amid regulatory challenges in the United States, where it faces legislation risks unless its Chinese ownership changes. However, launching a separate photo-sharing app like Notes could potentially help it overcome some of these issues, as the focus will likely remain on the core app.
Furthermore, social media analysts believe that TikTok could capitalize on its existing user base, much like Meta did with Threads. Still, TikTok’s success will mostly depend on its ability to offer a unique and compelling experience.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 40 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 141% rally in its share price over the past year, the average META price target of $533.24 per share implies 3.16% upside potential.
