Meta Platforms Inc (NASDAQ: META) shares are trading lower Monday. What's going on?
Meta shares may be facing selling pressure following a New York Times report suggesting TikTok is close to reaching an agreement with U.S. lawmakers that would allow it to make changes to its data security and governance in order to avoid a sale.
According to people familiar with the matter, TikTok and the Biden administration have put together a preliminary agreement that aims to resolve national security concerns around the short-form video app.
A TikTok spokesperson reportedly said the company is confident it can "fully satisfy all reasonable U.S. national security concerns."
Meta's Reels is the biggest competitor to TikTok. Earlier this month, Loup Ventures' Gene Munster recommended buying Meta shares on the thesis that TikTok would eventually get banned in the U.S.
KeyBanc Capital Markets analysts also released an update on Meta following the firm's quarterly consumer survey.
"Given we are unlikely to have a true read on the underlying engagement until Meta laps the broader short-form video rollout, we see few near-term catalysts," KeyBanc analysts said in a note.
Related Link: Meta, Snap, TikTok, Pinterest (NYSE:PINS), Twitter (NYSE:TWTR) All Saw Engagement Improve In Q3 — But Analyst Says 1 Platform Stands Out
META Price Action: Meta has a 52-week high of $199.45 and a 52-week low of $11.73.
The stock was down 1.56% at $138.23 Monday afternoon.
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