TikTok stock is the number one growing social media company right now beating out Facebook and SnapChat. With well over one billion monthly users and a valuation of over 75 billion dollars, to say that they're taking over the world is an understatement. But what's TikTok's stock price? Also, word on the street is big tech companies are chomping at the bit for a stake.
So what's the deal with TikTok Stock? Aside from being one of the hottest social media apps out there, many investors want to get a piece of this behemoth. The clock is Tik Tok-ing...check out our blog below with all the details you need to know on how to buy stock in TikTok.
Does TikTok Stock Have a Price?
- It seems the 20202 pandemic has caused TikTok to explode in users. Everywhere you turn, you see TikTok videos. From celebrities to my nieces and nephews. As a result, what is the TikTok stock price? The answer is $0 - at least for the general public at this time. You cannot invest in TikTok stock as it hasn't gone public yet. But is there a way to invest in something similar? Read more below.
- Check out our blog on another stay at home darling, Wayfair, here!
1. What Is TikTok?
I would never think the world needed another social media app, but boy was I wrong. This ticking time bomb exploded onto the market in 2017 after being launched by Chinese startup ByteDance. There is no TikTok Stock symbol nor is there a publicly traded stock for ByteDance...yet!
Tik Tok became the most downloaded app in the US in October 2018, making it the first Chinese app to achieve this in history.
In its most basic form, TikTok is a video sharing social media app. Users can watch, create, and share 3 to 15-second videos on cellphones. At this point, you're probably wondering what makes TikTok so special, especially considering the epic failure of its predecessor, Vine.
Besides adding effects like filters, background music, and stickers to their videos, users can also collaborate from different locations across the globe.
For anyone who has ever dreamed of creating duets with their loved ones across the globe, your dream has come true. As ridiculous as this sounds, the app is extremely addictive, and it shows with its high levels of engagement. Also, unlike a lot of apps, TikTok feels more like YouTube in the early 2000s. Meaning there is a lot of freedom, and experimentation, as well as the ability to use a lot of content from the public domain, without the fear of copyright infringement.
For example, on our YouTube channel, we can never live stream, or produce a video with someone else's copy-written music in the background. On TikTok, that is not the case. They appear to be working hard to allow the licensing of those sounds to be used on their platform, which makes it a lot of fun!
Without a doubt, this is one of the world's most popular social media apps. Even more impressive is that it's available in over 150 different markets and in 75 languages.
As of March 2020, the app hit close to two billion downloads. Not to mention the 104.7 million downloads in January 2020 alone.
Possibly the biggest difference between TikTok and Vine is simply the timing; TikTok became popular when people were already using Facebook and Instagram stories to share content, which has a very similar format to TikTok and Vine's. Read on for an analysis on whether TikTok is a threat to social media behemoth Facebook.
While there's no TikTok stock price, check our trading service and find out what stocks are hot and what stocks are NOT!
2. Is TikTok a Threat to Facebook?
Did you know that TikTok was the third most downloaded app falling just behind WhatsApp and Messenger. Shockingly it was more downloaded than both Facebook and Instagram. Wow!
To put this in perspective, TikTok might just be a significant threat to Facebook. Instagram, one of Facebook's Products, is trialing a feature called Reels in Brazil, which is widely perceived as a TikTok clone.
While there is no TikTok stock price, Facebook makes a great trading stock. It's highly liquid and volatile. As a result, you can make (and lose) money with Facebook stock.
Facebook is currently the world's largest online social network, with more than 2 billion monthly active users.
The ways in which it's users engage is much different than TikTok in that they are exchanging messages and sharing news events, photos, and videos.
On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue, which is a really smart move we think.
Facebook refers to this as Facebook Watch., and while you might not see it coming, it is coming and should be a big hit!
The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. And there are so many deep things going on with Facebook. You can buy and sell, date, write blogs, grow fan pages, build groups...the list goes on.
Advertising revenue represents more than 90% of $FB's revenue, with 50% coming from the U.S. and Canada, and 25% from Europe.
With gross margins above 80%, Facebook operates at a 40%-plus margin.
Don't despair if you can't invest in some of your favorite apps. Every day there are hundreds of stocks ripe for trading; that is if you know how to find them. Besides FB and TWTR, PINS and SNAP are two more social media apps that you can trade today on the US stock market.
Get the details on how instagram stock and Facebook are hot on our radar for 2020.
3. Background On TikTok
TikTok is a private company owned and held by the Beijing based tech giant ByteDance. I need you to hold your breath for this:
"ByteDance is one of the most highly valued privately held startups right now in the world, with a current valuation of around $75 billion dollars".
Founded in 2012, ByteDance is an internet technology company that owns a series of content platforms. In turn, these platforms enable people to connect by consuming and creating content through machine learning technology.
And with nearly 200 million daily active users, the company is here to stay. While there's no TikTok stock price, take our free online courses to learn how to trade other stocks.
4. What Makes ByteDance so Special?
More interestingly, this Internet start-up giant uses Artificial Intelligence to claim its foothold in the global social media networks of the world.
Bytedances' flagship product, Toutiao, is the largest AI-powered content platform in China. At a glance, Toutiao delivers personalized content recommendations to every user based on their interests.
In fact, ByteDance just may become the first Chinese company using AI to profit from social media use in the Western part of the world.
5. Who Owns ByteDance?
Unfortunately, not me. Its owned by private equity with funding from the likes of Sequoia Capital, an American venture capital firm that mainly invests in early stage tech companies like Tik Tok.
In fact, Sequoia Capital backs companies that now control $1.4 trillion of combined stock market value. Check out our list of penny stocks for more trading ideas, or better yet, get our real time stock alerts.
Can You Invest in TikTok Stock?
- Can you invest in TikTok stock? The answer is no. TikTok is not a publicly traded social media company like Facebook. Therefore, there is no TikTok stock price. However, keep a lookout for a potential IPO for the company that owned TikTok. There are whispers they'll be public sometime this year (2020).
1. How Can You Buy Shares of TikTok and BiteDance?
Now to answer the million-dollar question: How can I buy shares of TikTok stock and BiteDance? Unfortunately, you can't. Since TikTok and BiteDance are privately owned, their shares aren't publicly traded. Yet. Someone like you and I can't buy one single share of a privately owned company until and unless they offer an IPO (Initial Public Offering).
Which leads me to the next obvious burning question...
1. When Will ByteDance Go Public?
Whispers in the trading world allude to an IPO sometime in 2020, But the company says that the reports about a 2020 listing are false. Recent political scrutiny also will probably be a major headwinds to a 2020 IPO - more on that in our Final Thoughts.
2. Alternative Investing Routes
Since it's not possible to buy TikTok or ByteDance stock from the stock market, there might be other possibilities for investors to invest pre-IPO.
For example, EquityZen is an online marketplace for trading pre-IPO employee shares from privately held companies. Another option available to you is to invest in a private equity fund that invests in companies like ByteDance through venture capital rounds.
If you're curious to know where to find these funds, both EquityZen and AngelList will tell you. However, the problem with these routes is that they usually require an investor to be a high-net-worth individual (basically, you need over $1 million in liquid assets to be in this category of investors).
Final Thoughts: TikTok Stock Price
Since it's unlikely that there will be another funding round to raise capital, waiting for ByteDance to become public seems to be the simplest route to invest in TikTok Stock.
On July 30th 2020 US Senators have urged the Justice Department to investigate Both Zoom and TikTok.
President Trump might force Bytedance to actually sell Tiktok. Microsoft is said to be a good potential buyer, but will it happen? We had hoped for a US IPO but that doesn't seem likely at this stage. Some are speculating users may head to $SNAP stock, but will they?
The US government isn’t the only country concerned with privacy issues from Chinese apps; India banned TicTok 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.With these concerns, it is entirely possible that the Tik Tok stock price will remain at $0 for the foreseeable future. What do you think? Would you invest in TikTok if it went public? We'd seriously consider being a day 1 investor in this IPO.
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