Instagram Debuts New Video-Editing App, as TikTok Deals With a Ban

Published On Jan 19, 2025, 3:09 PM

Instagram has launched a new video-editing app called Edits, which closely resembles CapCut, a popular editing tool owned by TikTok’s parent company, ByteDance. This release comes as TikTok faces restrictions in the U.S. due to national security concerns, which has given Instagram an opportunity to capture more market share among content creators. The app aims to provide compelling tools for video creators on the platform, as competition heats up in the social media space.

Stock Forecasts

META

Positive

The launch of Edits by Instagram positions Meta to capitalize on TikTok's legal challenges in the U.S. Given the growing demand for video content, this could drive user engagement on Instagram, thereby improving ad revenue. As a result, investors may see increased performance from Meta's stock in the near term.

Related News

TikTok said Sunday it was beginning to restore service for US users after going dark overnight following a new law that effectively banned the app.

META
SNAP
GOOG
ORCL

Some users saw the social media app come back online on Sunday, following a shutdown when a federal law went into effect requiring a sale or ban.

Analysts have suggested it is "just matter of time" until the US ban on TikTok spreads.

META
BIDU