Meta, YouTube, and Others Morgan Stanley Says Could Benefit From TikTok Ban | Global News Avenue

TikTok could be banned Effective Sunday in the U.S.Morgan Stanley analysts said other social media platforms could compete for the roughly $10 billion in annual advertising revenue and the 32 billion hours users spend on the app.

The U.S. Supreme Court on Friday upheld a law requiring TikTok’s Chinese parent company ByteDance to sell the platform or face a U.S. shutdown starting Jan. 19 due to national security concerns. This means app stores like Alphabet (Google) Google Play Store and Apple’s (AAPL) TikTok will not be available to U.S. users on the App Store after Sunday’s deadline, and the app may be “shut down” to U.S. users.

Meta could be the biggest winner, says Morgan Stanley

Ahead of the decision, Morgan Stanley analysts said Meta (MehtaIf the ban goes into effect on Sunday, it could become the “biggest fundamental winner” given its large user base and data sets on Instagram, Facebook and WhatsApp.

They added that Meta’s ability to capture every 10% of time U.S. users currently spend on TikTok could add 30 cents to 60 cents to the company’s estimated revenue of about $30. earnings per share 2026.

“In other words, META’s ability to occupy TikTok half the time could be accretive to our EPS by $1 to $3 in ’26,” the analysts added. They noted that the biggest gains could come from Instagram Reels, which offers similar Short form content video content.

YouTube sees more engagement with Meta

Morgan Stanley said engagement on YouTube, particularly YouTube Shorts, is also likely to increase after TikTok shuts down in the US.

However, Morgan Stanley points out that Shorts monetize at half the rate of typical YouTube content, meaning the same 10% time share gain may only increase YouTube ad revenue by 1% to 2%. The company said that could mean that even if YouTube gets 50% share and Shorts makes money at standard YouTube rates, its owner Alphabet’s ad revenue will only grow 1.2% in 2026.

Snapchat, Pinterest and Roblox are all competitors

Social media company Snapchat (break) and Pinterest (password), and the online gaming entity Roblox (RBX), may also compete for a piece of the advertising revenue pie, Morgan Stanley said. However, analysts warn that these companies may need to prove performance, scalability and return on ad spend.

reddit(RDDT) and Aplovin (appMorgan Stanley added that the companies could also see long-term benefits, noting increased engagement on their platforms.