Meta Platforms and Alphabet saw gains in their stock prices on Friday as uncertainties surrounding TikTok’s future in the U.S. continued.
Meta Platforms’ shares hit an all-time high of $629.78 during the day before settling at $622.85, up 2.3%. Alphabet’s shares also rose 1.1%, closing at $176.21.
The rise in stock prices comes after a U.S. appeals court upheld a law requiring TikTok’s Chinese owner ByteDance to divest its U.S. assets by January 19, 2025, or face a nationwide ban. The potential ban could lead to a shift in ad spending from TikTok to competitors like Meta’s Facebook and Instagram and Alphabet’s YouTube, both of which offer short-form video features designed to compete with TikTok.
TikTok’s U.S. ad revenue is expected to reach $12.3 billion this year, according to Emarketer. Analysts estimate that Meta’s advertising revenue in 2024 could reach approximately $159 billion.
Meta and Alphabet stand to gain a significant share of TikTok’s ad revenue if the app is banned.
The potential changes in the social media advertising landscape have also impacted other platforms. Snap, the owner of Snapchat, saw its shares rise 1.89% to $12.40, while Trump Media & Technology, which operates the Truth Social app, rose 3% to $34.78.
Despite the legal challenges, TikTok continues to attract advertisers, with brands maintaining their presence on the app while preparing contingency plans. Meta and Alphabet’s stock movements reflect market expectations of benefiting from any potential disruptions in TikTok’s operations.
