Snap Inc. (SNAP) shares closed at $12.44 on December 6, 2024, marking a 2.22% increase from the previous day's close of $12.17. The stock opened at $12.37 and reached a high of $13.02 during the trading session, with a significant volume of 49,916,333 shares, which is 174.26% of the average daily volume. The surge in Snap's stock price was primarily driven by a federal appeals court ruling that upheld a U.S. law requiring TikTok's parent company, ByteDance, to divest its U.S. operations or face a ban by January 2025. This legal development has been perceived as a potential advantage for Snap, as it could lead to increased user engagement and advertising revenue if TikTok's presence in the U.S. market diminishes.
The court's decision has sparked optimism among investors in rival social media platforms, including Snap, as it potentially reduces competition from TikTok, a major player in the space. Additionally, recent institutional interest, such as Holocene Advisors LP's acquisition of 321,134 shares valued at approximately $3.4 million, has further bolstered investor confidence in Snap's market position and future prospects.