Meta Platforms and Alphabet saw gains in their stock prices on Friday as uncertainty surrounding TikTok’s future in the US persists.
Shares of Meta Platforms reached an all-time high of $629.78 during the day before settling at $622.85, up 2.3%. Alphabet shares also rose 1.1%, closing at $176.21.
The rise in stock prices comes after the US Court of Appeals upheld a law requiring the Chinese company ByteDance, which owns TikTok, to liquidate its US 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 ad revenue in the United States is expected to reach $12.3 billion this year, according to Emarketer. Analysts estimate that Meta advertising revenue in 2024 could reach about $159 billion.
Meta and Alphabet are expected to take a significant share of TikTok’s ad revenue if the app is banned.
Potential changes in the social media advertising landscape have also affected other platforms. Snap, which owns Snapchat, saw its shares rise 1.89% to $12.40, while Trump Media & Technology, which runs Truth Social, rose 3% to $34.78.
Despite the legal challenges, TikTok continues to attract advertisers, as brands maintain a presence on the app while preparing contingency plans. Meta and Alphabet’s stock movements reflect market expectations to benefit from any potential disruptions to TikTok’s operations.
