TikTok has received a lot of attention recently, and investors have begun to consider investing in TikTok stock. Is there a stock related with TikTok? Is it possible to make a profit using TikTok? This blog post will discuss TikTok’s shares and how to buy TikTok stock.
What Is TikTok and How Does It Work?
TikTok is a video-sharing social media platform. Its users make short lip sync comedy and talent videos with it. The duration of these films varies from 3 to 15 seconds.
ByteDance is the name of the firm behind this smartphone app. ByteDance is a Beijing-based firm that was established in 2012.
TikTok is the international version of Douyin, which was first released in China in 2016. Due to its popularity, it was renamed TikTok and introduced internationally outside of China in 2017. Despite their similarities, the apps are hosted on distinct servers to comply with Chinese censorship rules.
TikTok has a unique feature in that it analyses users’ likes and preferences using artificial intelligence. Users allow TikTok to offer tailored material to them based on their interactions with the material.
Why is TikTok gaining so much traction?
After expanding outside of China in 2017, TikTok grew at a breakneck pace. In October 2018, it became the most downloaded app in the United States. This makes TikTok the first Chinese app to accomplish this feat.
The app has been available in over 150 markets and 75 languages since 2018. The app surpassed 1 billion downloads globally in 2019, which is a significant achievement. TikTok had 2.5 billion global downloads in November 2020. In the United States alone, there were approximately 90 million monthly active users as of July 2020.
TikTok was also the ninth most downloaded mobile app in the decade that ended in 2019.
It’s easy to see how these figures received a lot of media attention and coverage.
TikTok was the top downloaded app in Q1 2021, topping out Facebook, Instagram, WhatsApp, and Messenger. As a result, TikTok is posing a serious threat to Facebook. In August 2020, Instagram, a Facebook product, debuted Instagram Reels, which is often regarded as a TikTok clone.
However, one of TikTok’s biggest issues is monetizing the platform. It also needs to give its influencers the option of earning money from advertising or from the views that their audiences provide.
TikTok’s revenue for 2019 reached US$17 billion, with an astounding $3 billion in net profit, thanks to over 1.5 billion monthly active users.
Is TikTok a publicly traded company?
TikTok is a product developed by ByteDance, a Chinese firm. ByteDance is still privately held, which means that its stock is not yet publicly traded.
ByteDance, on the other hand, has gotten funding from SoftBank, a well-known investment business. After the disasters of Uber, Slack, and WeWork, Softbank is eager to have a successful IPO among its investments, and ByteDance is likely to be their next gamble. That implies it’s realistic to expect ByteDance to go public in the near future, allowing consumers to invest in TikTok.
According to certain sources, ByteDance will go public in the spring of 2020. According to some sources, ByteDance’s valuation increased to more than $100 billion in May 2020 as a result of recent private share sales. According to Bloomberg, it has also traded as high as $140 billion.
How Can I Make Money on TikTok?
Because TikTok stock cannot be purchased on the stock market, there may be other ways for investors to participate in ByteDance before the IPO.
EquityZen, for example, offers a secondary market for pre-IPO stock. It works like this: private company shareholders can sell their stock options to investors. The majority of stockholders will most likely be employees of these companies seeking liquidity for their illiquid corporate stock.
Another option is to invest in a private equity fund that makes venture capital investments in firms like ByteDance. Investors can diversify their interests in early-stage or pre-IPO companies through funds offered by EquityZen and AngelList. Investors that participate in these funds gain access to exceptional early-stage companies that have been pre-screened by experienced investors.
However, the problem with these private equity firms is that they almost always require a high-net-worth individual to invest. As a result, only the wealthiest individuals may invest in such funds.
Because another investment round is unlikely in the near future, waiting for ByteDance to go public appears to be the simplest way to invest in TikTok.
It’s also worth remembering that picking stocks on your own isn’t always a good idea, especially before an IPO.
According to certain reports, ByteDance will be placed on the Hong Kong stock exchange soon.
Frequently Asked Questions
What exactly is TikTok?
TikTok is a video-sharing social media platform. Its users make short lip sync comedy and talent videos with it. The duration of these films varies from 3 to 15 seconds.
What is it about TikTok that attracts so much attention?
After expanding outside of China in 2017, TikTok grew at a breakneck pace. In October 2018, it became the most downloaded app in the United States. This makes TikTok the first Chinese app to accomplish this feat.
Is TikTok a publicly traded company?
TikTok is a product developed by ByteDance, a Chinese firm. ByteDance is still privately held, which means that its stock is not yet publicly traded.
What is the best way for me to invest in TikTok?
Because TikTok stock cannot be purchased on the stock market, there may be other ways for investors to participate in ByteDance before the IPO. EquityZen, for example, offers a secondary market for pre-IPO stock. Another option is to invest in a private equity fund that invests in venture capital rounds in firms like ByteDance. Such funds are available from both EquityZen and AngelList. However, it appears that waiting for ByteDance to go public is the simplest way to invest in TikTok.
Who came up with the idea for TikTok?
ByteDance is the company behind TikTok. ByteDance is a Beijing-based firm that was established in 2012.
Who is the owner of TikTok?
ByteDance is the owner of TikTok. ByteDance is a Beijing-based firm that was established in 2012.
What is the name of TikTok’s CEO?
Kevin Mayer, the chairman of Disney’s streaming division, is leaving to become the CEO of TikTok.
What is the value of TikTok?
ByteDance, a Chinese privately held technology business, owns TikTok. ByteDance was originally valued at $75 billion, but recent private share transactions increased its value to Chinese beyond $100 billion in May 2020.
Is Bytedance listed on the stock exchange?
No, ByteDance is still privately held, which means that its stock is not yet publicly traded.
You can also read on how to buy stocks on subway and Instagram.