However, you can invest in TikTok indirectly by buying shares in the private equity companies which own it. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances.
However, the underwriters will put a figure on TikTok stock before the IPO. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 46% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
TikTok Revenue
Although the company had plans to IPO on either the NYSE or Nasdaq exchanges in 2021, this move was blocked by Chinese regulators.
Is TikTok publicly traded?
- TikTok, a video-sharing app, is one of Earth’s most popular media products and one of the fastest-growing social media apps.
- However, some analysts and investors believe that ByteDance will eventually go public, as it could unlock more value for its shareholders and employees.
- 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.
- But it’s also a high-risk investment because it faces potential challenges from regulators and deep-pocketed competitors.
- The platform is widely known for its social and copy trading features.
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. Since TikTok is not publicly traded, retail investors cannot buy TikTok stock directly.
TikTok Stock a Facebook Threat
- WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.
- Snap is an American company, unlike ByteDance, so President Trump may not see Snapchat as a security threat.
- Unfortunately, investors cannot purchase shares of Panera Bread because it is a private company.
- However, there is no official announcement or timeline for when TikTok or ByteDance will go public.
On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews. We have members that come from all walks of life and from all over the world. We love the diversity of people, just like we like diversity in trading styles. It creates an environment much like a university or college. TikTok is unlikely to be sold to an American company without the approval of the Chinese government. That remains to be seen, as they’ve threatened this for some time.
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The TikTok app has also been the starting point for many of the most recent viral crazes and influencer-driven content. TikTok has not yet announced plans for an IPO, though many people expect it to go public in the next few years. You may also be interested in learning how to buy SpaceX stock and/or how to buy pre IPO stock. The average user spends 52 minutes on TikTok daily, and Android users spend 68 billion on TikTok annually. You want to be a successful stock investor but don’t know where to start. Meta’s third-quarter revenue jumped 23% to $34.15 billion, indicating a rebound in digital advertising.
Until both sides give the green light, TikTok’s future in the U.S. hangs in the balance — with millions of users and billions of dollars in advertising revenue waiting on the outcome. TikTok’s U.S. arm has been valued around $14 billion under the proposed deal, a figure many analysts see as far below what the company’s growth and revenue potential would suggest. That makes the agreement look like a bargain for U.S. investors. At the same time, some critics say the separation may not be as clean as it looks. Meta is focused on improving user engagement and driving advertising revenue through its platforms. Meta Platforms Inc. (Facebook) operates the largest social media ecosystem in the world.
Facebook is currently the world’s largest online social network, with over 2 billion monthly active users. How its users engage is much different than TikTok in that Automated trading they exchange messages and share news events, photos, and videos. On the video side, the company is building a library of premium content and monetizing it via ads or subscription revenue, which is smart. It took just 9 months for TikTok to reach 100 million users, an unprecedented rate of growth. It’s now used by more than 1.5 billion people each month, one of just 7 social media apps with more than 1 billion monthly active users. You cannot directly buy shares of Tik Tok stock as a retail investor.
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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. Luckily for TikTok, the delays haven’t hurt the business or its valuation.
Who owns ByteDance stock?
The app allows users to create and share short videos with music, filters, stickers, and other features. TikTok is also known for its viral challenges, trends, and influencers that have shaped pop culture and online entertainment. Getting access to a private market with someone offering to sell ByteDance shares at a price you’re willing to pay isn’t easy — or even possible — for most investors. However, two publicly traded investment companies hold shares of ByteDance, and anyone can buy shares in them.
Neither TikTok, nor its parent company ByteDance, are publicly traded companies, so you cannot purchase stock in either of them. However, there are some ways to gain exposure to TikTok or buy shares in other social media platforms. 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.
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. Since it’s unlikely that there will be another funding round to raise capital, waiting for ByteDance to become public is the simplest route to invest in TikTok Stock. If you’re curious to know where to find these funds, both EquityZen and AngelList will tell you.
But just because you can gain some slight exposure to TikTok doesn’t mean you should. 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.
However, it seems the majority of requirements have now been met for TikTok to be listed on a US stock exchange, and the IPO is eagerly awaited. The company was looking to take advantage of its fast-growing popularity as one of the most downloaded apps in the world. More engaged users mean that the advertising becomes more valuable and makes it a more attractive place for companies to spend bigger chunks of their advertising budget. The bulk of TikTok’s revenue is generated from advertising and in-app purchases.
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