TikTok Stock: Who Owns TikTok & How to Buy TikTok Shares
Shares of ByteDance aren’t publicly traded, but accredited investors may be able to buy shares from existing shareholders in a private market exchange. Both of these private equity firms have an entire portfolio of investments, of which TikTok’s parent company, ByteDance, is just one. Perform your own due diligence and make sure you want to own the complete portfolio of companies before choosing to invest. The way it works is that shareholders of private companies can sell their stock options to investors.
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If you buy at an IPO you know there will be a market for your shares when the lockup period expires, even if there’s no assurance of profit. These private equity funds usually require an investor to be a high-net-worth individual. That means only wealthy individuals can really invest in such funds.
Investingintheweb.com does not provide any offer or solicitation to buy or sell any investment products, nor does it constitute an offer to provide investment advisory services. This website is free to use but we may receive commission from some of the merchants mentioned. TikTok is a product created by a Chinese company called ByteDance.
In late 2023, ByteDance offered to buy back stock from shareholders for $160 per share, valuing the company at $223.5 billion. It paid $170.81 per share in another buyback offer in early 2024. The US has concerns that user data from the app will be readily accessed by the Chinese government, breaching privacy laws.
Most IPO underwriters allocate set numbers of shares to specific brokers for their clients. You’ll need an account with a broker that has a share allocation. You will tell your broker how many shares you want and they will tell you how many you can get. There is no assurance that you will be able to get a share allocation. TikTok’s growth was explosive after launching in 2017 outside of China. It became the most downloaded app in the US in October 2018, the first Chinese app to achieve this.
Investors should watch for updates from Meta regarding the progress of its various projects that could provide further upside potential to share prices. It is possible to privately invest in ByteDance (the company that owns TikTok), but this isn’t available to most retail investors unless you have a significant amount of money to invest. Although TikTok faces stiff competition from the likes of Meta, Alphabet, and Snap – it’s TikTok that has been the social media business to beat in recent years. All the more established social media companies have been losing market share and ad revenue to TikTok.
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TikTok is not publicly traded because it is owned by Bytedance, a privately-held Chinese company, and eight other venture capital companies. TikTok is one of the fastest-growing apps globally, touting one billion monthly active users and billions of downloads. Its parent company, ByteDance, had several valuations that claimed a value of as much as $400 billion, but since it isn’t publicly traded, no market value is confirmed. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform.
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The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 70% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money. The rising interest in TikTok has many investors curious about how to buy https://forexanalytics.info/ TikTok stock. TikTok is not a publicly traded company – it’s a subsidiary of ByteDance – and its parent company’s shares do not trade on a US exchange, making it a complicated investment.
In 2021, TikTok was the most downloaded app of the year beating Facebook, Instagram, WhatsApp, and Messenger. TikTok is currently the 6th most popular social media app in the world and the second most popular video-specific app, behind only YouTube. ByteDance is a privately held Beijing-based company founded in 2012. ByteDance is currently valued at around $220 billion, a 25% drop over the last year. 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.
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. The final option for acquiring shares in TikTok is to approach the other private equity firms that own a stake in the company. President Donald J. Trump (R-Florida), think TokTok is a security threat because the AI gathers massive amounts of user data.
Why do people want to invest in TikTok?
While there have been ongoing rumors and discussions about the possibility of TikTok or its parent company, ByteDance, going public, no definitive plans have been announced. 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. Regulators in the West have expressed concern that ByteDance may put sensitive user information into the hands of the Chinese government. They also worry that the algorithms in the app may be tweaked to influence public opinion in a way that is favorable to adversarial nations. As of November 2021, ByteDance was partially owned by global investors (60%), employees (20%), and co-founders Zhang Yiming and Liang Rubo (20%). If you’re an accredited investor, you can invest directly in ByteDance (more info below).
As long as you understand those risks, investing in TikTok through a private equity asset forex trading vs options trading management firm may be suitable for your portfolio. But ByteDance is just a small portion of the firm’s overall portfolio. It has more than $575 billion in assets under management, including $182 billion in private equity investments.
- None of the writers or contributors of FinMasters are registered investment advisors, brokers/dealers, securities brokers, or financial planners.
- But after the TikTok IPO, it will be publicly traded on a stock exchange.
- They do not represent the opinions of Vertigo Studio SA (publishers of FinMasters) on whether to buy, sell or hold shares of any particular stock.
- 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.
- This upgrade suggests increased investor confidence in the company’s prospects.
On the corporate front, Snap Inc. has been focusing on leadership by adding new members to its board. On September 18, 2023, the company announced that Patrick Spence joined the Snap Inc. Board of Directors, bringing in his expertise to help guide the company’s strategy and growth.
This would create more transparency and security, while still allowing the app to function in the U.S. Currently, all TikTok user data is stored in Singapore and Virginia. There is no ByteDance or TikTok symbol and you cannot buy shares of it in your typical brokerage account.
