What is Tiktok Stock and How to Invest?

Print This Post Print This Post

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. Facebook (or Meta as it is now called) is the single largest social media platform in the world and has over 2 billion global users as of July 2020. 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. The Chinese company Tencent is a tech firm and owner of WeChat (Weixin), another popular app that President Trump tried to ban in the US over national security concerns.

Going to such an effort to gain exposure to one stock may not be worth your time. If you’re looking to build long-term wealth, a better strategy may be to invest in funds that hold the stock of many companies, such as index funds or exchange-traded funds. 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. However, there are still ways for investors to gain indirect exposure. Some publicly traded companies have invested in ByteDance, so an indirect investment is possible.

How to Buy Boring Company Stock : What You Need to Know

According to data from Cloudflare, it has even surpassed Google as the most visited website in the world in 2021. It could be challenging to understand what makes TikTok so successful. A report by Forbes asked the opinions of several experts, which boiled down to people’s love of music and how TikTok lends itself well to viral trends. The platform encourages communal participation, which helps it continue to grow in popularity. TikTok may also continue to grow and become more widely adopted in the professional world. Meltwater, a media monitoring service, released a survey of 3,000 professionals who work in social media and marketing.

Is TikTok going public?

  • In addition to TikTok, ByteDance has other products, such as Lark, a communication and collaboration platform.
  • You can invest in TikTok by buying shares in SoftBank or KKR, which owns stock in ByteDance, TikTok’s parent company.
  • If you’re curious to know where to find these funds, both EquityZen and AngelList will tell you.
  • Based on similar companies, TikTok could trade somewhere around $100 to $200.

But can you actually buy shares of TikTok on the stock market? It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career. We will help to challenge your ideas, skills, and perceptions of the stock market.

  • ByteDance, the owner of TikTok, is not yet listed on the stock market.
  • On the other hand, you’ll be able to buy as few or as many shares as you want, and you’ll have a chance to observe the stock’s market reception before you pull the trigger.
  • With more than one billion monthly users, it has become impossible to write TikTok off or dismiss it as a fad.
  • One way that you can buy TikTok Shares is by purchasing stock in KKR & Co, as it is a publicly traded company that owns a stake in TikTok.

What Makes ByteDance Special?

Several politicians have advocated breaking up large social media corporations such as Facebook and Twitter, though no serious movement has gained traction yet. Despite the outstanding performance of the company, Facebook has been in trouble too many times to count in recent years. Tencent also owns several smaller holdings in mobile and PC gaming companies. We will know what TikTok’s ticker symbol is if and when the company submits an S-1 filing to the Securities and Exchange Commission. Several experts have attributed TikTok’s massive success to its impressive AI algorithms. Artificial intelligence algorithms help organize TikTok’s content and are responsible for what people see when they open their profile page and check their feeds.

Various rumors have circulated about a possible ByteDance initial public offering (IPO), which is when a company becomes publicly traded on the stock market. TikTok’s staggering user growth rate is one of the biggest reasons it might be a good investment if it eventually goes public. After all, TikTok is the fastest-growing social media platform of 2022. Neither TikTok nor ByteDance is publicly traded right now, meaning that investing money directly in TikTok or ByteDance isn’t possible yet.

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 a piece of the action in one of the world’s fastest-growing digital media platforms. Here’s what you need to know if you’re interested in investing in TikTok. TikTok is owned by ByteDance, a privately held company based in Beijing, China. This is important to understand because it’s the reason why you won’t find a stock ticker or a company name specifically for TikTok in the stock market.

How to Invest in TikTok Stock in

Sellers may be current or former employees, venture capitalists, or angel investors. However, it does offer some employees restricted stock units, which vest over time as long as they remain employed. Regulatory risks and established competition aren’t unique to TikTok. Many Chinese tech companies face similar challenges regarding regulation, and any small start-up must overcome deep-pocketed competitors. As long as you understand those risks, investing in TikTok through a private equity asset management firm may be suitable for Financial derivatives examples your portfolio. The views about companies, their securities and funds expressed in this article reflect the personal opinions of the individual writer.

Liking videos also saves them to currency prediction your Liked Videos roster for anytime access. If ByteDance does decide to go public, TikTok’s stock name (or ByteDance’s) will likely generate significant buzz. Until then, those interested in investing should keep a close eye on news and consider alternative ways to gain exposure to TikTok’s industry. It’s hard to say exactly what the future holds for TikTok and ByteDance. The company’s valuation has already skyrocketed, and going public could open up new opportunities for growth. The stock would likely be listed under its parent company’s name, ByteDance, if it were to go public.

Unauthorized use, distribution or reproduction is prohibited. Transactional information does not guarantee future investment results. EquityZen cannot guarantee finding or approving a transaction crossing moving average strategy at any displayed price.

ByteDance is a video-sharing social networking service

This week, another Chinese app called Xiaohongshu, or RedNote, is gaining attention in the app stores. Click the closed lock to access videos set viewable to only you. Be mindful about broadcasting identifiable locations, information or situations privately. The hallmark heart icon registers your “Like” to applause creative videos.

We perform original research and testing on charts, indicators, patterns, strategies, and tools. Our strategic partnerships with trusted companies support our mission to empower self-directed investors while sustaining our business operations. Some analysts think advertisers could use TikTok’s algorithm to market products to young people who tune out all other advertising. For example, TikTok could show a young person who enjoys watching auto videos and footage of the latest model cars. Analysts believe TikTok’s most valuable asset is a machine-learning platform that uses algorithms to track and identify the videos users want to watch. The algorithm identifies the videos that users are most likely to watch.

TikTok is one of the world’s most successful and popular apps, even though it is just five years old. In contrast, ByteDance released the app in 2016, and Mark Zuckerberg began Facebook in 2004. Tencent Holdings Limited, the Chinese multinational conglomerate, has been active in the news, and several recent developments have affected its business. Highly respected journalists break stories using Twitter, and many people claim that they get news and discussion from the app.

In its current format, TikTok allows users to create, watch and share videos. The app uses an algorithm to provide a feed of content specific to the user’s interests, which has helped drive high engagement. Many investors are eagerly waiting for the TikTok stock IPO, which would allow them to buy shares of the company directly. However, there is no official announcement or timeline for when TikTok or ByteDance will go public.

Advertisements