Snapchat has seen its stock rise as anticipation grows over a potential ban on TikTok, which could significantly benefit the platform's growth in the U.S. market.
Despite experiencing global user growth, Snapchat's North American users have remained stagnant, highlighting the need for the company to innovate to attract local audiences.
Snap's efforts to pivot from being communication-focused to engaging users in video consumption has not been as effective as anticipated, especially with competition from TikTok.
Analysts indicate that Snapchat's domestic situation could worsen if TikTok users shift to rival platforms like YouTube Shorts or Instagram Reels, leaving Snap at a disadvantage.
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