Meta Platforms Stock Surges After Legal Victory

Meta Platforms (NASDAQ:META), the parent company of Facebook, reached a record high on Friday after a significant legal win that may affect its main competitor, TikTok.

The U.S. appeals court upheld legislation requiring China-based ByteDance to sell its popular short video app TikTok by early next year or face a ban in the U.S. This ruling reinforces a bipartisan law signed by President Joe Biden, allowing the government to possibly prohibit other foreign-owned apps that pose data collection risks to American citizens.

TikTok, with a user base of 170 million in the U.S., and ByteDance previously challenged this law, arguing it violates constitutional rights and limits free speech.

Following the court's ruling, Meta's stock jumped, reaching a peak of $629.78, though it later settled at $625.37, reflecting a 2.7% increase. This surge highlights Meta's competitive edge in social media, particularly against TikTok, as both contend for user engagement and advertising revenue.

In the broader market, Alphabet (NASDAQ:GOOGL), which oversees YouTube and Google, saw a 1.1% rise in shares to $174.68. Additionally, Trump Media & Technology Group, led by President-elect Donald Trump and operating the Truth Social platform, experienced a 3.4% increase in shares, closing at $34.89.

While the ruling currently favors Meta, it may not end here, as ByteDance and TikTok are expected to appeal, possibly taking their case to the full appeals court panel or the U.S. Supreme Court.

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