According to a 2021 report by Tiger Global, TikTok’s valuation stands at an impressive $220 billion, making up nearly half of parent company ByteDance’s total valuation of $460 billion. This significant valuation rise from $35 billion in 2018 highlights TikTok’s success in global user engagement and effective monetization methods. TikTok, the social media giant with a valuation of approximately $220 billion, is reportedly considering an Initial Public Offering (IPO) sometime between 2023 and 2024. While the exact timeline remains nebulous due to the volatile economic landscape, the speculation surrounding this move is high. In the crowded social media space, TikTok is a formidable competitor to established platforms like Instagram and YouTube.
The AI algorithm combs through terabytes of data to find new and trending videos that would interest the particular user. The massive amount of user data that these algorithms gather is one reason why Donald Trump claimed that TikTok could be a potential threat to US national security. In 2020, then-US President Donald Trump signed executive order to ban TikTok in the US within 45 days if the parent company ByteDance did not sell it to an American company. According to President Trump, there was evidence that TikTok was a national security threat.
- Backlashes against potential misuse of its user data and dangerous challenges that may go viral on the platform could negatively impact its future.
- TikTok is a privately owned Chinese company, and they don’t have a stock symbol.
- Meta has been particularly aggressive with its Reels format on Facebook and Instagram, and it’s just starting to focus on monetization, which could slow revenue growth for TikTok.
- Then, in December 2020, KKR participated in another round that raised $2 billion at a $178 billion valuation.
- IG’s grey market price is based on our prediction of ByteDance’s market cap at the end of the first trading day.
- ByteDance is one of the world’s largest privately held companies.
Since TikTok gets so much attention, its revenue and worth are closely watched by investors. It’s currently estimated that TikTok is worth $50-$75 billion, but the actual dollar figures are closely guarded. For example, TikTok has been banned several times in India due to criticism of the Indian government on the platform. The app experienced a seismic growth in popularity among the Chinese population, so the company prepared for an international release. Most recently, the company has opened a $300 million share repurchase program for employees at a price of $160 per share, implying a $223.5 billion valuation.
While TikTok has yet to announce an IPO, rumors and discussions surrounding the potential for an IPO have been circulating for some time. It could be challenging to understand what makes TikTok so successful. A report by Forbes https://www.topforexnews.org/news/the-repo-market-and-our-broken-system/ asked the opinions of several experts, which boiled down to people’s love of music and how TikTok lends itself well to viral trends. The platform encourages communal participation, which helps it continue to grow in popularity.
In March 2020, TikTok’s market share by the number of downloads reached 88%. While some of that drop might be attributed to bans, competitors are likely to continue working on attracting the TikTok global user base. Several countries have banned or attempted to ban TikTok, including China, which doesn’t let people download the app.
TikTok Stock Market Competitors
Overall revenue for ByteDance came in at $85.2 billion that year, generating $20 billion in operating profit. Jessica is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock market education. Meanwhile, though, you will have to make do by investing in other social media companies or KKR & Co Inc.
Since buying TikTok or ByteDance stock from the stock market is impossible, investors might have other possibilities to invest in pre-IPO. Facebook is one of the largest and most popular social media apps you can invest in now. It’s only common sense that if TikTok is doing well, Facebook would be doing well, too.
Also, unlike many apps, TikTok feels more like YouTube in the early 2000s. There is a lot of freedom, experimentation, and the ability to use content from the public domain without the fear of copyright infringement. In its most basic form, TikTok is a video-sharing social media app. Users can watch, create, and share https://www.day-trading.info/best-penny-stocks-to-buy-now/ 3 to 15-second videos on cell phones. At this point, you’re probably wondering what makes TikTok so special, especially considering the epic failure of its predecessor, Vine. Start trading the ByteDance (TikTok) grey market, before the potential IPO – long or short – with a live or demo account with IG today.
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However, Tencent Holdings owns a significant stake in Snap Inc. President Trump labeled Tencent’s WeChat as being from the United States and banned it in August 2020. 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. 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.
These moves reflect Tencent’s strategic adjustments to navigate regulatory pressures, focus on profitability, and leverage growth opportunities in its diverse portfolio of businesses. Investors and industry analysts closely watch the company’s actions as indicators of broader trends in the Chinese gold bear market explained tech sector. Furthermore, Tencent is diversifying its business model and exploring new revenue streams. The company’s cloud services division slashed prices by up to 40% in an intense price war, aiming to capture a larger market share in China’s competitive cloud computing industry.
TikTok details
Despite the outstanding performance of the company, Facebook has been in trouble too many times to count in recent years. Tencent also owns several smaller holdings in mobile and PC gaming companies. The answer is TikTok’s combination of user features and sophisticated algorithms for generating and finding relevant content.
TikTok Stock FAQ and Recap
That said, there is a way you can invest in the company (without being a creator). We will help to challenge your ideas, skills, and perceptions of the stock market. Every day people join our community and we welcome them with open arms. We are much more than just a place to learn how to trade stocks. TikTok is the number one growing social media company, beating out Facebook and Snapchat. Also, word on the street is that big tech companies are chomping for a stake in the company’s success.
You can invest in ByteDance through KKR or SoftBank Group stock—the two global investing firms that own ByteDance. Such platforms might not currently offer pre-IPO access to TikTok or ByteDance since the company faces regulatory uncertainty in China. However, this opportunity might become accessible in the future if ByteDance manages to push through with its IPO plans. While TikTok videos mostly dominated the short-form sharing space throughout the pandemic in 2020 and 2021, many competitors vied to take over some of its market share. The positive stock movement reflects the market’s response to the company’s strategies and performance.
Tencent created a social media company similar to Instagram and owns a 40% stake in Epic Games (the creator of Fortnite), and a 93% stake in Riot Games (the creators of League of Legends). TikTok videos are so sharable because they are short five-second to one-minute long clips that can be cut and spliced using the app’s editing tools. TikTok quickly became one of the most popular video streaming apps in the world. In fact, it was the first Chinese app to become the most downloaded app in the US.
Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Learn how you can make money from the wave of seasoned companies innovating in AI and new AI tech companies. Several politicians have advocated breaking up large social media corporations such as Facebook and Twitter, though no serious movement has gained traction yet. Allegations of breaking antitrust laws and accusations that the platform contributes to political violence and propaganda have all caused it to come under severe public scrutiny.