In response, Instagram has adopted a raft of features similar to the China-founded app.

On Tuesday, New York time, Meta shares slid about 4.5 per cent, wiping billions from the company’s value amid a wider sell-off triggered by the giant American retailer Walmart slashing its earnings forecast just as companies including Meta are about to report their results.

Meta has rebounded from scandals and user unhappiness before. It navigated a shift from users accessing Facebook on computers to smartphones in the early 2010s, which presented an existential risk at the time. And it has successfully copied popular features, such as Instagram stories, from competitors like such as Snapchat.

But TikTok is a particularly tough competitor because its algorithm for video recommendations learns fast and is very accurate. Meta founder and chief executive Mark Zuckerberg told staff in a call on June 30, a recording of which was obtained by technology site The Verge, that it would take 12 to 18 months before Meta had “line of sight” to passing its rival.

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