What's Going On With Meta Shares Friday?

Meta Platforms, Inc. META shares are trading higher on Friday after a report indicated that a U.S. Appeals Court has upheld a law mandating ByteDance to divest TikTok in the United States by Jan. 19 or face a ban.

The Details: ByteDance, TikTok’s Chinese-based parent company, can appeal the ruling to the U.S. Supreme Court or a full appeals court panel, according to Reuters.

The court reasoned that the real concern was not with the U.S. government, which had been working with TikTok to find a solution, but with the risks posed to U.S. national security by China's control of the app.

TikTok and ByteDance contend that the law is unconstitutional and infringes on the free speech protections of Americans. TikTok also denies claims that it has shared or would ever share U.S. user data.

President Joe Biden can grant a 90-day extension to the January deadline, or President-elect Donald Trump could do so once he takes office. TikTok would need to demonstrate significant progress toward the divestiture to prompt an extension.

Meta shares may be rising after the court’s ruling, as a potential divestiture or ban on TikTok would reduce competition in the social media space. Additionally, without TikTok, users could turn to platforms like Meta, X or Snapchat.

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META Price Action: At the time of writing, Meta shares are trading 2.91% higher at $626.65, according to data from Benzinga Pro.

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