NEW YORK – Shares of Facebook-owner Meta Platforms (NASDAQ: META) hit a record high on Friday after a U.S. appeals court upheld a law requiring China-based ByteDance to divest its popular short video app TikTok by early next year or face a ban.
The decision is a devastating blow to ByteDance, whose social media app is used by 170 million Americans. It affirmed a law, which was passed by Congress with bipartisan support and signed by President Joe Biden, that gives the U.S. government sweeping powers to ban other foreign-owned apps that could raise concerns about Americans’ data collection.
TikTok and ByteDance argued that the law is unconstitutional and violates Americans’ free speech rights.
Meta Platforms (NASDAQ: META) shares rose to a record high of $629.78 and were last up 2.38% at $623.27. Meta’s social media platforms, including Facebook and Instagram, compete with TikTok for users and advertising.
Shares of Alphabet (NASDAQ: GOOG), which owns YouTube and the dominant Google search engine and also competes in online ads, were up 1.1% at $174.68. Trump Media & Technology (NASDAQ: DJT), which operates the Truth Social social media platform and is majority-owned by President-elect Donald Trump, rose 3.4% to $34.89.
The appeals court ruling can be appealed to the full appeals court panel or the U.S. Supreme Court by ByteDance and TikTok.
