Facebook Shares Rally On Launching TikTok Competitor

Access To Financial Markets Made Easy • Aug 7, 2020 at 4:50 AM EDT

Shares on Facebook are in hot demand as the social media app launched a new Instagram feature called Reels in the US which is designed to rival Chinese upstart app TikTok.

Shares on Facebook (FB) are in hot demand as the social media app launched a new Instagram feature called Reels in the US which is designed to rival Chinese upstart app TikTok. Reels allows users to create a short-form video with added audio and augmented reality effects.

Facebook shares rally on launching TikTok competitor

Facebook investors have been worried about the growing dominance of TikTok among US teens and young adults as the app boasts more than 100 million monthly active users in the US.

The timing of Facebook's rival launch comes at a time when US President Donald Trump signed an executive order for US firms to stop doing business with the company within 45 days. The executive order also includes WeChat. Both of these are two of China's biggest apps.

TikTok has also attracted the attention of Microsoft (MSFT) who are currently in talks to buy the app's operations around the world.

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