By George Glover
TikTok has been granted an extra 75 days to avoid a U.S. ban but investors in rival social media companies appeared unfazed by the news.
Rival companies' stocks were edging higher in premarket trading, even though the social-media app got a stay of execution from new President Donald Trump.
Shares in Facebook parent Meta Platforms were up 0.3% ahead of the opening bell, while Snapchat owner Snap climbed 0.5% and Reddit stock rose 1%. Futures tracking the benchmark S&P 500 index added 0.4%.
Trump's 11th-hour effort to save TikTok dented the social-media stocks last week, but they weren't moving much Tuesday because investors had probably already priced in the expectation that the Chinese-owned app would be able to come back online.
On Monday, Trump signed an executive order to give TikTok owner ByteDance more time to work out a deal to avoid a U.S. ban. The directive calls for the attorney general not to enforce the Protecting Americans from Foreign Adversary Controlled Applications Act for 75 days so that Trump's administration can "determine the appropriate course forward in an orderly way that protects national security while avoiding an abrupt shutdown of a communications platform used by millions of Americans."
TikTok went dark for more than 12 hours over the weekend, but restored service early Sunday after Trump said he would delay the ban via an executive order.
As of early Tuesday, the platform still wasn't available to download on app stores owned by Apple and Google parent Alphabet. Despite Trump's executive order, they could be fined up to $5,000 per person who accesses TikTok via their service under the terms of the act that Congress passed to ban the app in April 2024.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 21, 2025 07:34 ET (12:34 GMT)
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