TikTok Ban Delay: What's Next for Meta and Snap Stocks?

The Supreme Court's decision to uphold the law requiring TikTok's U.S. operations to be banned or sold has left the tech industry on edge. However, President Trump's recent announcement of a delay in the ban has sparked new discussions about the future of TikTok and its impact on competitors like Meta Platforms (META) and Snap (SNAP). As investors await the next move, let's explore what this delay means for Meta and Snap stocks.



Meta Platforms (META): A Potential Beneficiary

Meta, the parent company of Facebook and Instagram, stands to gain significantly from a TikTok ban. With TikTok's user base and advertising revenue likely to shift to other platforms, Meta is well-positioned to capitalize on this opportunity.

* Reels Expansion: Meta can further promote and expand its Reels feature on both Facebook and Instagram. Reels is Meta's short-form video product, which directly competes with TikTok. By investing in Reels, Meta can attract TikTok users who are looking for alternatives.
* Advertising Strategy: Meta can also capitalize on the potential redistribution of TikTok's advertising revenue. With TikTok's U.S. ad revenue projected to be around $10.4 billion, Meta, as the dominant player in social media advertising, could absorb a significant portion of these dislocated dollars.



Meta's stock has already shown gains following the Supreme Court's hearing on TikTok's fate. On January 10, 2025, Meta's stock rose by 3% to $629.12. As users shift to Reels and advertisers redirect their spending, Meta's stock performance could continue to improve.

Snap (SNAP): Another Potential Gainer

Snap, the parent company of Snapchat, can also benefit from the TikTok ban. With TikTok's user base and advertising revenue likely to shift to other platforms, Snap is well-positioned to capitalize on this opportunity.

* Snapchat's Short-Form Video Product: Snap can enhance its short-form video product to attract TikTok users. By improving the features and user experience, Snapchat could become a more appealing alternative for users looking for a TikTok replacement.
* Advertising Opportunities: Similar to Meta, Snap can also benefit from the redistribution of TikTok's advertising revenue. As TikTok's ad revenue is projected to be around $10.4 billion, Snap could potentially absorb some of these dislocated dollars.



Snap's stock has also shown gains following the Supreme Court's hearing. On January 10, 2025, Snap saw a 7% gain, reaching $12.96. As Snapchat attracts more users and advertisers, its stock performance could continue to rise.

Potential Impact on TikTok Buyers and the Tech Sector

The delay in the TikTok ban could influence potential buyers of TikTok's U.S. operations and have an impact on the tech sector as a whole. A delay could encourage more companies to consider buying TikTok's U.S. operations, increasing competition and potentially driving up the sale price. The acquisition of TikTok's U.S. operations by a major tech company could reshape competition in the sector, leading to increased innovation, marketing efforts, and potentially lower prices for consumers.

In conclusion, the delay in the TikTok ban has the potential to benefit Meta and Snap stocks as users and advertisers shift their attention to these platforms. As the situation evolves, investors should keep a close eye on the actions of potential TikTok buyers and the impact on the tech sector as a whole.