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 https://broker-review.org/ 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.
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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.
TikTok Key Company Facts
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.
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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 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.
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 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.
- That means only wealthy individuals can really invest in such funds.
- If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.
- Then, in December 2020, KKR participated in another round that raised $2 billion at a $178 billion valuation.
- The algorithm-operated service will ship customers the products they regularly buy and eliminate the need for shopping.
- This knowledge will empower you to make well-informed decisions and will allow you to move forward.
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.
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.
You cannot buy shares in TikTok directly as a retail investor. TikTok is not publicly traded because it is owned by Bytedance, a privately-held Chinese company, and eight other venture capital companies. TikTok is owned by parent company ByteDance (which is privately owned). But after the TikTok IPO, it will be publicly traded on a stock exchange. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider.
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.
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.
It popularized the short-form video format, built an incredible content-recommendation algorithm, and is working on new ad technology to monetize it. But it’s also a high-risk investment because it faces potential challenges from regulators and deep-pocketed competitors. Each day our team does live streaming where we focus trade99 review on real-time group mentoring, coaching, and stock training. We teach day trading stocks, options or futures, as well as swing trading. Our live streams are a great way to learn in a real-world environment, without the pressure and noise of trying to do it all yourself or listening to “Talking Heads” on social media or tv.
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”.
Before the pandemic, the company generated revenue of nearly $11 billion, with net income of almost $1.9 billion. Last year, the company only posted $1.53 billion in sales and a staggering loss of $5.3 billion. For the year ended Sept. 30, 2021, Disney posted revenue of $67.4 billion, which was down 3% from the fiscal year before the pandemic. But on a TTM basis, the company is looking at sales of nearly $73 billion, which is about 5% higher than the most recent pre-pandemic year. While it’s difficult to pinpoint individual consumers’ core reasons, the brand features a non-judgmental ethos aimed at attracting non-gymgoers.
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.
The company has been reducing its workforce in some areas and selling off portions of its investment portfolio, including a stake in Meituan, to raise capital. This move to sell part of its stake in the food delivery giant for about $3.5 billion indicates a focus on core businesses and financial prudence. It is not confirmed 100% if TikTok will float on the stock market.
You’ll need an account with a broker that has a share allocation. You will tell your broker how many shares you want and they will tell you how many you can get. There is no assurance that you will be able to get a share allocation. If pre-IPO shares are not available or if the minimum purchase or qualification requirements are prohibitive, you can consider investing in the IPO itself. Do you ever second-guess yourself for not investing in a certain stock?
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.
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, https://forex-reviews.org/fusion-markets/ 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.
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.
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. That cuts your potential gains, but you’ll also have less risk. 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.