Snap shares are stuck. Could a TikTok ban give a boost?

Speculation about “where users will go after TikTok” has been building for weeks, as uncertainty surrounding a TikTok shutdown is high. After the Supreme Court upheld the ban in a unanimous 9-0 decision this morning, the app’s fate appears likely to fall to new President Donald Trump, who told CNN he will “make the decision.”

Behind the scenes, rival social media companies have been working hard to ensure they are well-positioned in the public consciousness when it comes to TikTok 170 million American users suddenly have more free time – and among them is embattled Snapchat, which launched a new advertising campaign on Wednesday to woo creators.

I’m stuck

Snap is trying to capitalize on its exit from TikTok as it struggles with stagnant growth in the U.S. and a stock price that has been in the doldrums for more than 2.5 years.

Snap’s stock has fluctuated with every story, rumor and whisper about TikTok’s fate: Yesterday shares fell more than 5% after reports emerged that the ban could be delayed.

Global appeal

According to a Variety report this week, Snapchat downloads in the U.S. hit a record low in December, down 17% from a year earlier. In fact, more than half of Snap’s daily active users now come from outside North America and Europe.

While the growing overall user base sounds promising, there’s a catch: users from the rest of the world aren’t as valuable. In the last quarter Snap made easy $1.09 per user in these regions, about an eighth of the $8.54 earned per user in North America. In short, users from the rest of the world aren’t as helpful in pulling the company, which has posted uninterrupted net losses in all but one quarter since 2015, out of the red.

To boost advertising sales, which more than make up 95% To boost its revenue, Snap recently launched two new ad formats in September. Then came the big highlight in December: a monetization program that allows eligible creators to earn ad revenue from their content on Spotlight, Snap’s TikTok-style short-form videos — where viewership skyrocketed 25% Year after year this month. If TikTok gets banned, Snap execs hope they’ll be in the spotlight.