Why Snap And Meta Platforms Shares Are Rising

Snap Inc (NYSE: SNAP) and Meta Platforms Inc (NASDAQ: META) shares are trading higher Thursday amid TikTok CEO Shou Zi Chew's congressional testimony. A ban or crackdown on TikTok in the U.S. could benefit other social media platforms.

What To Know: The TikTok CEO is in the midst of a heated exchange with the U.S. House Energy and Commerce Committee in which lawmakers are questioning TikTok parent company ByteDance and the government in China's ability to access information of U.S. users. 

Lawmakers appear to be unconvinced that the U.S. user information can be considered safe as long as TikTok is owned by a Chinese company. 

TikTok is known for video sharing. It hosts user-submitted videos on its platform. Both Snap's Snapchat and Meta's Facebook and Instagram feature short-form video capabilities and are seen as beneficiaries of a potential TikTok ban.

See Also: TikTok At 'Pivotal' Moment, Warns CEO: Ban Could Take App 'Away From All 150 Million Of You'

SNAP, META Price Action: Snap was up 7.38% at $11.87 and Meta was up 3.01% at $205.83 at the time of publication, according to Benzinga Pro.

Photo: Alexander Bahena from Pixabay.