Meta shares surge to record high as US Court upholds TikTok ban citing security concerns

Shares in Meta Platforms — the parent company of Facebook reached a record high on Dec 6 after a US appeals court upheld a law requiring China-based ByteDance to divest its popular short-video app TikTok by early next year or face a potential ban.

The ruling is a significant setback for ByteDance, whose app is used by 170 million Americans. The court affirmed a law passed with bipartisan support in Congress and signed by President Joe Biden, granting the US government extensive authority to ban foreign-owned apps that could raise concerns over the collection of Americans’ data.

TikTok and ByteDance had argued the law is unconstitutional and infringes on Americans’ free speech rights.

Meta shares climbed to an all-time high of $629.78, closing 2.7% higher at $625.37. The company’s platforms, including Facebook and Instagram, compete directly with TikTok for users and advertising revenue.

Alphabet — the parent company of YouTube and Google, also saw its shares rise by 1.1%, reaching $174.68, while Trump Media & Technology, the operator of the Truth Social platform, increased by 3.4% to $34.89.

The decision is expected to be challenged further, potentially being brought before the full appeals court panel or the US Supreme Court by ByteDance and TikTok.