Many people will assume TikTok Global will not make money because of the track record of companies such as Snapchat (SNAP) and Twitter (TWTR). Some observers, including the management teams at Microsoft (MSFT), Walmart (WMT), Oracle (ORC), and ByteDance, think otherwise. TikTok Global will not own Doyuin or share in its revenues, so there is no evidence That It will make money. However, it could make money by selling its algorithms to other companies. Meta’s strong ad revenue and cost-cutting have driven earnings outperformance, with net income up 164%.
Utilize a pre-IPO platform
The TikTok IPO is one that’s going to attract both casual and experienced investors. Traders worldwide will hope to buy shares in TikTok when they become available. The company was looking to take advantage of its fast-growing popularity as one of the most downloaded apps in the world.
Snap Inc., the parent company of the popular social media platform Snapchat, has made recent business news with several key developments. There are publicly traded companies similar to TikTok Global and ByteDance you can invest in now. Several social media companies offer similar products to TikTok Global. The prospects for a ByteDance or TikTok initial public offering (IPO) anytime soon grew a bit dimmer in late 2022. Amid slow progress on the IPO, ByteDance bought back $3 billion in shares at a $300 billion valuation to allow early investors to cash out some of their equity without an IPO.
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Again, this makes it more likely that the advertising campaigns will succeed and increase sales figures, ensuring companies keep spending money to advertise through TikTok. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its … None of the writers or contributors of FinMasters are registered investment advisors, brokers/dealers, securities brokers, or financial planners.
That said, ByteDance has received investment from SoftBank, a well-known investment firm. Softbank is keen to have a successful IPO amongst its investments, after Uber, Slack, and WeWork’s failures, and ByteDance will likely be their next bet. That means it’s reasonable to believe that ByteDance will go public at some point soon and therefore enable users to invest in TikTok.
As of Q1 2022, there were over 100 million monthly active users in the United States alone. However, the report notes that this would value the company at under $200 billion — far less than recent estimates of the company’s value. That’s why it’s essential to take these evaluations with a grain of salt since they often come with disclaimers of not knowing the real value of a privately held company. 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.
Some pre-IPO trading platforms may let you trade the equities of ByteDance ahead of its IPO. One such platform is EquityZen, which offers several ways to invest in pre-IPO equities. Although TikTok’s growth is reminiscent of Facebook in its early days, it hasn’t been all smooth sailing for the platform and its parent company, ByteDance. In addition to TikTok, ByteDance has other products, such as Lark, a communication and collaboration platform. It also owns Xigua Video, a Chinese video-sharing platform comparable to YouTube.
Start trading the ByteDance (TikTok) grey market, before the potential IPO – long or short – with a live or demo account with IG today. The situation currently facing ByteDance and by extension TikTok remains highly fluid. Of course, while those financial firms evidently believe that ByteDance was a good investment at the time, the company has come under increasing scrutiny from a number of governments in 2020.
- Despite being valued at $250 billion, ByteDance is also not publicly traded.
- Sequoia Capital, General Atlantic, and Hillhouse Capital Group are all privately held companies.
- All the more established social media companies have been losing market share and ad revenue to TikTok.
- We develop high-quality free & premium stock market training courses & have published multiple books.
- Although TikTok’s growth is reminiscent of Facebook in its early days, it hasn’t been all smooth sailing for the platform and its parent company, ByteDance.
TikTok could send videos about hardware or tools to people who watch how-to videos for home improvement projects. Many people consider TikTok addictive because 90% of users claim to use the app daily. TikTok retains users at a rate of 26%; one out of four people who use TikTok becomes a regular user. 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.
When is the TikTok IPO?
So, it isn’t possible to buy shares of TikTok or ByteDance unless the company goes public. Various rumors have circulated about a possible ByteDance initial public offering (IPO), which is when a company becomes publicly traded on the stock market. ByteDance, TikTok’s parent company, is a private company and doesn’t have a proven market value. But it was reportedly worth $400 billion as of October 2021, according to anonymous private equity trades that were shared online.
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. You will not be able to sell your shares until the lockup period expires. The combination of popularity and controversy draws attention, and TikTok has become a highly recognizable brand for consumers and investors alike. An interesting feature of TikTok is that it uses artificial intelligence to analyze users’ interests and preferences and display personalized content to them.
You want to be a successful stock investor but don’t know where to start. Snap is an American company, unlike ByteDance, so President Trump may not see Snapchat as a security threat. All of Snap’s intellectual property is presumably in American hands. Analysts think ByteDance powers TikTok with some of the world’s most sophisticated Artificial Intelligence (AI).
One of ByteDance’s major investors is SoftBank (SFTBY), a publicly traded Japanese bank based in Tokyo. Kohlberg Kravis Roberts (KKR) is a private equity company based the ultimate beginner’s guide to forex backtesting in New York that is also publicly traded and has invested in ByteDance. Knowing how to invest in stocks such as TikTok stock may not be obvious at first.
ByteDance key personnel: who manages the company?
President Trump labeled Tencent’s WeChat as being from the United States and banned it in August 2020. As a certified market analyst, I use its state-of-the-art AI automation to recognize and test chart https://forexanalytics.info/ patterns and indicators for reliability and profitability. 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. A similar initiative, called Project Clover, was proposed to store European data in Ireland and Norway. TikTok has also been banned from government devices in many European countries.