In late 2023, ByteDance offered to buy back stock from shareholders for $160 per share, valuing the company at $223.5 billion. No, ByteDance is still privately held, meaning its shares are not available on the stock market yet. ByteDance is the world’s most valuable VC-backed company by a wide margin. That alone is guaranteed to whet the appetities of investors. There’s still no indication that the company will go public any time soon, or at all. Under these circumstances investment would have to be considered highly speculative if it is possible at all.
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Ordinarily, you wouldn’t think about Kroger being one of the more popular TikTok stocks available. However, according to Mediakix.com, food and beverages represent one of the biggest hashtag categories on the social media platform. For TikTok stocks, there’s a danger of following potentially novice or erroneous guidance that only appears legitimate due to a lucky streak. What’s more, you should be aware that taking an active approach to investing is usually much riskier on average. There could be a potential IPO for TikTok sometime in the near future, so we’ll keep this page updated with that news. Also, one of the main problems with social media companies is that most of their revenue relies on advertising from their partners.
TikTok IPO: Revenue, Users, Valuation & How to Invest
Here’s how to buy TikTok stock whether you’re an accredited investor or a retail investor. Many investors are excitedly hoping that TikTok will finally be listed on a US stock exchange sometime during 2024, but this isn’t officially confirmed. Indeed, the community could very well be much more engaging for young and budding Gordon Gekkos, who can learn from their peers about trading tactics and strategies.
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Certainly, it beats reading a bunch of stale books on finance, which can be a dry topic for even the most disciplined students. Therefore, TikTok stocks offer a relevance that you might not appreciate. Similar to TikTok, ByteDance is a privately held company, so you cannot directly invest in either of them. You can, however, invest in KKR & Co Inc, which owns a stake in ByteDance. It’s not a direct investment, but it’s likely as close as you can get before we see a TikTok IPO. Investing in social media is also risky due to the current political climate surrounding social media companies.
Many details of the TikTok Global IPO, including the stock exchange and the ticker symbol, are unknown. However, some Chinese companies, including Alibaba (BABA), trade on the New York Stock Exchange. You can invest in TikTok by buying shares in SoftBank or KKR, which owns stock in ByteDance, TikTok’s parent company.
As of November 2021, ByteDance was partially owned by global investors (60%), employees (20%), and co-founders Zhang Yiming and Liang Rubo (20%). Buyers can accept the asking prices as listed or place bids and negotiate directly with sellers. If you’re an accredited investor, you can invest directly in ByteDance (more info below). If you don’t qualify as an accredited investor, skip to the second section, which is for retail investors.
TikTok’s growth was explosive after launching in 2017 outside of China. It became the most downloaded app in the US in October 2018, the first Chinese app to achieve this. The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs. Please ensure you fully understand the risks and take care to manage your exposure. TikTok has not yet announced plans for an IPO, though many people expect it to go public in the next few years.
Analysts estimate TikTok Global’s valuation to be $60 billion. TikTok Global is a proposed U.S. company that will own TikTok’s North American operations. New York University Marketing Professor Scott Galloway speculates that Walmart (WMT) could use TikTok’s algorithm to learn which groceries customers buy each week.
Our goal at FinMasters is to make every aspect of your financial life easier. We offer expert-driven advice and resources to help you earn, save and grow your money. As with any investment, careful balancing or risks and potential rewards is essential. Since https://forex-review.net/interactive-brokers/ it’s unlikely that there will be another funding round in the short-term, waiting for ByteDance to become public seems to be the simplest route to invest in TikTok. Most IPO underwriters allocate set numbers of shares to specific brokers for their clients.
Some observers, including the management teams at Microsoft (MSFT), Walmart (WMT), Oracle (ORC), and ByteDance, think otherwise. ByteDance generated $17.20 billion in revenue in 2019, TechCrunch claims. TechCrunch claims most of ByteDance’s revenue comes from Chinese advertising sold on Doyuin and other apps. Instead of marketing products, Walmart could offer customers a subscription to a service. The algorithm-operated service will ship customers the products they regularly buy and eliminate the need for shopping.
The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. EToro is one of the world’s most popular investing platforms with over 28.5 million users. The best way to own a piece of TikTok is by buying KKR or Softbank Stock – two global investing firms that own stock in Bytedance, TikTok’s parent company. TikTok is not listed on a stock exchange and you cannot buy its shares – at least not directly. But suppose TikTok is able to successfully navigate all these challenges. In that case, this could be an extremely exciting opportunity for investors to own a piece of the next big social media company.
Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
However, this trend is starting to change as more social media companies branch out to offer other kinds of paid services. Facebook also owns encrypted messenger WhatsApp, which also hit the two billion user mark in July 2020. Unlike many other social media companies, Facebook actually generates ludicrous amounts of money. Twitter is another major social media player and is one of the most used apps in the world by celebrities, journalists, and more. It trades on the New York Stock Exchange but is expected to be taken private once Elon Musk finishes acquiring the company.
But can you actually buy shares of TikTok on the stock market? ByteDance – the owner of TikTok – is not currently a publicly traded company. Moreover, ByteDance has not provided any indication as to when it may list or how the recent issues between the US and China may impact a potential future listing.
Investing in TikTok isn’t as straightforward as investing in other popular social media companies. The popular short-form video app is owned by the Chinese company ByteDance, which doesn’t trade publicly on any stock exchanges. But there’s a way to get https://forex-review.net/ a piece of the action in one of the fastest-growing digital media platforms in the world. Here’s what you need to know if you’re interested in investing in TikTok. The rising interest in TikTok has many investors curious about how to buy TikTok stock.
In 2021, TikTok was the most downloaded app of the year beating Facebook, Instagram, WhatsApp, and Messenger. TikTok is currently the 6th most popular social media app in the world and the second most popular video-specific app, behind only YouTube. Its users use it to create short videos, between 15 seconds and 10 minutes. Self-taught and sharing what they’ve found out, a new generation of retail investors is taking the markets — and not memes — seriously.
- Its market capitalization is in the ballpark of $32 billion.
- However, there are still ways for investors to gain indirect exposure.
- Luckily, most brokers offer various funding options, including bank transfers and credit/debit card payments.
- It has more than $500 billion in assets under management, including $174 billion in private equity investments.
- A drop in popularity would see a lower valuation, meaning less money could be raised.
- However, there’s currently no way to directly buy its stock.
TikTok is a product created by a Chinese company called ByteDance. ByteDance is still privately held, meaning its shares are not available on the stock market yet. Both of these private equity firms have an entire portfolio of investments, of which TikTok’s parent company, ByteDance, is just one.
We know that you’ll walk away from a stronger, more confident, and street-wise trader. TikTok doesn’t offer a stock symbol to trade because they are a privately owned company. Founded in 2012, ByteDance is an internet technology company that owns a series of content platforms. These platforms enable people to connect by consuming and creating content through machine learning technology. This is undoubtedly one of the world’s most popular social media apps. Even more impressive is that it’s available in over 150 different markets and 75 languages.
Despite a ban in India, ByteDance, TikTok’s owner, claims to have exceeded 1bn monthly users. According to The Economist, on January 12, 2022, App Annie, a data gatherer, said TikTok caught up with Facebook in 2021 and overtook WhatsApp and Instagram in users’ time. Meta’s third-quarter revenue jumped 23% to $34.15 billion, indicating a rebound in digital advertising. This increase is significant as it suggests a recovery from the digital advertising industry’s challenges, such as privacy changes and economic headwinds (Search Engine Land).
As well, the company owns valuable franchises like Star Wars, which invariably inspires skits featuring classic characters from the science-fiction movie series. Combined with Disney’s theme parks and resorts, social influencers have plenty of material to work with. Staying on the fitness and health theme, F45 Training — a group-based exercise class — has taken the underlying scene by storm. Hollywood A-lister Mark Wahlberg invested in the firm back in 2019 and later, former soccer superstar David Beckham became a global partner. Several politicians have advocated breaking up large social media corporations such as Facebook and Twitter, though no serious movement has gained traction yet.
Walmart could ship those products straight to customers and eliminate the ordering process. Chinese officials think TikTok’s AI and Algorithms are so valuable that they could block ByteDance from selling the technology to an American company. However, ByteDance is moving forward with the TikTok Global deal. That indicates ByteDance could have the Chinese government’s permission to export its technology.
Perform your own due diligence and make sure you want to own the complete portfolio of companies before choosing to invest. You cannot directly buy shares of Tik Tok stock as a retail investor. However, you can invest in TikTok indirectly by buying shares in the private equity companies which own it. Although TikTok faces stiff competition from the likes of Meta, Alphabet, and Snap – it’s TikTok that has been the social media business to beat in recent years. All the more established social media companies have been losing market share and ad revenue to TikTok. Invariably, when the top contributors of TikTok make it big, plenty of them love showing folks up with their Lambos.
For long-term investors, the price difference between a pre-IPO and a post-IPO purchase may not be large enough to justify the greater complexity and risk of buying early. If you’re in that bracket, a post-IPO purchase is probably the best way to go. If you buy after the IPO you won’t get the rock-bottom prices that you would get canadian forex brokers from a pre-IPO purchase or the somewhat higher price you’d pay for participating in the IPO. On the other hand, you will be able to gauge the market’s reception to the IPO before you buy. IPO shares may come with a lockup period, often 60 or 90 days. You will not be able to sell your shares until the lockup period expires.
We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. The US government isn’t the only country concerned with privacy issues from Chinese apps; India banned TikTok and other Chinese apps just last month. Even renowned gamer and social media star Tyler “Ninja” Blevins has announced that he is deleting the TikTok app. “ByteDance is one of the world’s most highly valued privately held startups right now, with a current valuation of around 75 billion dollars”.
