TikTok is like crack cocaine, according to a Wall Street research firm. A top market analyst explains how the Chinese app has displaced giants across Big Tech.

TikTok is addictive, easy to access, and provides quick hits — which prompted Bernstein to compare it to crack cocaine. A top analyst breaks it down.

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1. TikTok's dominance is getting noticed on Wall Street. With over 1 billion users logging on to the app per month, every major US social media brand is trying to replicate the success of the Chinese video platform.

It's proven so popular that Bernstein analysts published a note this week arguing that TikTok exhibits some of the same attributes as a drug, specifically likening the app to crack cocaine.

"The algorithm pushed the most viral content directly to the user delivering endorphin hit after hit with each swipe," the authors wrote.

It's an extreme comparison; the real crack epidemic devastated communities and killed thousands. While the note doesn't suggest TikTok will kill anyone, it does present a severe description of the app's addictiveness.

I sat down with Bernstein senior analyst Mark Shmulik for a deeper dive.

"If you look at stocks like Meta and Snapchat, they've underperformed, and that's in part because of TikTok," Shmulik told me.

Though shares of TikTok parent ByteDance are not public, its meteoric rise is in stark comparison to the sagging fortunes of its competitors. Shares of Meta have dropped more than 50% so far this year, and Snap has seen a 76% decline.

"Really, it's something new that's come around and displaced the giants."

Competitors like YouTube, WeChat, and others are diving into this "digital epidemic", as he describes it, trying to grab TikTok's ballooning share of social media users.

"You get these hits every video, and it's really easy to access," Shmulik said. "It's about a faster, shorter high, with a lot of addictive properties."

The internet-stock expert also touched upon why TikTok has sparked such a dramatic ripple across Wall Street.

TikTok, ultimately, has emerged as a master attention-grabber — and eyeballs are a key currency for investors.

"If you think about how those stocks trade, it starts with user engagement," he said. "Anything that's shown exponential growth that takes away attention from your company can change how investors feel about long-term potential."

What do you think of TikTok? Has it impacted your outlook on Big Tech investing? Email me at prosen@insider.com or tweet @philrosenn.

In other news:

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3. On the docket: Toronto-Dominion Bank, Dollar General Corporation, and VMware Inc., all reporting. Plus, the Jackson Hole economic policy symposium commences today.

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7. The euro won't rebound from its slide against the dollar if Europe's gas crisis drags on, Societe Generale said Wednesday. The pressure on prices is "crushing" the common currency, and analysts don't anticipate it to bounce back anytime soon. This week, the euro hit parity with the greenback for the second time this year and then moved below it.

8. A 21-year-old firefighter and first-time homeowner made it through a childhood of homelessness and foster care to reach financial stability. He explained that keeping a sharp focus on his dream helped him push through times when money was tight. Here's his story, and what he plans to do next.

9. These dividend stocks are set to surge as a new bull market kicks off, according to a portfolio manager whose fund has crushed 96% of competitors this year. Ryan Kelley's mutual fund has outperformed most others so far this year — and these are the five companies that his model is bullish on right now.

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Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.

Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn).

Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.