Some, even shares in quality companies, may sputter or even drop immediately after the IPO. There is no assurance that a ByteDance IPO would happen on a US market. If you want to buy at a foreign IPO you will need to look into investing in foreign markets. These private equity funds usually require an investor to be a high-net-worth individual.
- The final option for acquiring shares in TikTok is to approach the other private equity firms that own a stake in the company.
- The United States and India are two key government’s that have taken issue with ByteDance and the way it configures its apps – with both citing security concerns as a key issue.
- TikTok is the international version of Douyin, which was launched in 2016 in the Chinese market.
- Rather, if you believe that the market is driven primarily by collective human emotions, these TikTok stocks could be worth your time.
- TikTok, released in September 2016, is a popular social media app that allows users to create, watch, and share 15-second videos shot on mobile devices or webcams.
The Chinese regulators granted publishing licenses to 44 foreign games, including titles from Tencent, signaling an easing of the freeze on game approvals that had impacted the industry. Some of those social media companies are proven money makers, unlike TikTok Global. However, it does offer some employees restricted stock units, which vest over time as long as they remain employed. However, both arguably have greater resources than the Chinese company to build audiences and content-recommendation algorithms while monetizing their respective platforms.
ByteDance is a privately held company and its shares do not currently trade on any public exchange. Since it’s not possible to buy TikTok stock from the stock market, there might be other possibilities for investors to invest in ByteDance pre-IPO. Some platforms like EquityZen provide a secondary market for pre-IPO equity. https://forexhero.info/ Another possibility is to invest in a private equity fund that in turn invest in companies like ByteDance in venture capital rounds. That said, waiting for ByteDance to become public seems to be the simplest route to invest in TikTok. The rising interest in TikTok has many investors curious about how to buy TikTok stock.
Unlike many other social media companies, Facebook actually generates ludicrous amounts of money. TikTok does not have a stock price and will not until the company goes public. Based on the share price of its competitors, TikTok stock price could be about $100 per share.
Can I Invest in ByteDance?
If you buy after the IPO you won’t get in as cheaply as you would with an IPO or pre-IPO purchase. 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. That’s especially important if the company makes its debut orbex review during a generally weak market. If you buy at an IPO you know there will be a market for your shares when the lockup period expires, even if there’s no assurance of profit. ByteDance is a privately held Beijing-based company founded in 2012. ByteDance is currently valued at around $220 billion, a 25% drop over the last year.
In exchange for funding the options, you will receive a percentage of future proceeds from successful liquidity events. Like most social media platforms, TikTok makes money from advertising and in-app spending. Certain users, called “creators,” can also make money based on the number of views of their videos. Followers can also voluntarily “gift” money (i.e., tip) to the creators of their favorite videos.
How to Invest in ByteDance, the Company Who Owns TikTok
Also, one of the main problems with social media companies is that most of their revenue relies on advertising from their partners. However, this trend is starting to change as more social media companies branch out to offer other kinds of paid services. 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. The AI algorithm combs through terabytes of data to find new and trending videos that would interest the particular user.
TikTok Explained
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. Vertigo Studio SA is not responsible and cannot be held liable for any investment decision made by you. Before using any article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence. TikTok’s growth was explosive after launching in 2017 outside of China.
Shares of ByteDance aren’t publicly traded, but accredited investors may be able to buy shares from existing shareholders in a private market exchange. 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. ByteDance has grown into a potent online force propelled in part by a TikTok short video platform that’s taken U.S. teenagers by storm.
TikTok: What It Is, How It Works, and Why It’s Popular
TikTok is not a publicly traded company, so it does not have a stock symbol. It is also unknown what the TikTok stock ticker will be if an IPO for the company ever launches. Currently, you cannot buy TikTok stocks on either of these platforms (or others), but you might be able to in the future. There are also two other ways you could invest in TikTok down the road. These include waiting for the initial public offering (IPO), or purchasing shares if its stock is listed on a pre-IPO marketplace like EquityZen or Linqto. The platform has a surprisingly advanced set of video editing tools, which has allowed users to make some extremely creative and technically impressive videos.
Meta is focused on improving user engagement and driving advertising revenue through its platforms. Recently, Meta has also made strategic investments in emerging technologies such as internet infrastructure and artificial intelligence to expand its influence in the digital space further. Meta Platforms Inc. (Facebook) operates the largest social media ecosystem in the world. Meta owns four of the top social media platforms in the world, including Facebook, Instagram, WhatsApp, and Messenger.
Hugely successful creators with millions of followers can generate significant income in this way. For example, a creator who receives 1 million views can earn $20–$40, and a user who garners 10 million views can earn $200–$400. It was briefly banned but restored in other countries including Indonesia and Bangladesh. The majority owner of TikTok is ByteDance, a Chinese technology company.
However, on a trailing-12-month (TTM) basis, sales are at $304.3 billion. Highly respected journalists break stories using Twitter, and many people claim that they get news and discussion from the app. 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. TikTok videos are so sharable because they are short five-second to one-minute long clips that can be cut and spliced using the app’s editing tools. TikTok quickly became one of the most popular video streaming apps in the world.
This demonstrates the company’s ability to grow its top line and manage expenses effectively to boost profitability. TikTok is owned by ByteDance Limited, a privately-held Chinese Startup part-funded by KKR, SoftBank, Sequoia Capital China, and seven other venture capital companies. TikTok’s parent company, ByteDance, Ltd., most recently offered to repurchase shares from employees in late 2023 for $160 per share, valuing the company at $223.5 billion. It’s already been shut down in India, where it had 200 million users.
Likely, the popularity stems from regular folks sharing their results with each other, which also serves as a point of inspiration. 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. 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. Meanwhile, though, you will have to make do by investing in other social media companies or KKR & Co Inc.
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. However, despite these positive indicators, Meta has cautioned that the advertising rebound may not last, suggesting that the company is preparing for potential volatility in the digital ad market. The positive stock movement reflects the market’s response to the company’s strategies and performance. Tencent has seen positive developments in gaming with China’s approval of new games, a key area for the company’s revenue.
Tencent created a social media company similar to Instagram and owns a 40% stake in Epic Games (the creator of Fortnite), and a 93% stake in Riot Games (the creators of League of Legends). If TikTok does go public, you can pick up shares on a trading platform, like Robinhood or Webull. TikTok’s revenue is private but estimated at over $200 million this year.
