We also offer real-time stock alerts for those that want to follow our options trades. You have the option to trade stocks instead of going the options trading route if you wish. 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. Read on to analyze whether TikTok threatens social media behemoth Facebook and if there’s a TikTok stock.
- Advertising revenue represents over 90% of FB’s revenue, with 50% coming from the US and Canada and 25% from Europe.
- Many Chinese tech companies face similar challenges regarding regulation, and any small start-up must overcome deep-pocketed competitors.
- Vision Funds invest primarily in private equity companies with valuations topping $1 billion, also known as unicorns.
- Softbank is a Japanese telecom and e-commerce company that also operates a holding company and its well-known $100 billion Vision Funds.
- For now, ByteDance is a privately-owned company, meaning that ByteDance stock is not available on the stock market.
It develops and operates several artificial intelligence (AI)-based products such as TikTok, Douyin, Toutiao, Xigua Video, BuzzVideo, and News Republic. You cannot buy bytedance stock symbol ByteDance stock directly because ByteDance is not a publicly listed company. You can buy stock in the private equity companies that own ByteDance, KKR, and Softbank.
The app could be banned in the United States — one of its largest, most lucrative markets — as well as Canada and several European nations. Many governments have already banned the app on government devices, and some states have restricted access to TikTok on https://1investing.in/ government-owned internet connections. While TikTok’s user growth may be slowing from the astronomical levels it saw in previous years, it’s just starting to ramp up its advertising business. The company generated about $10 billion in global ad revenue in 2022.
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. It’s a little harder than most companies, but certainly possible.
It’s not clear how ByteDance — which as a private firm has far fewer disclosure and audit requirements versus its listed rivals — performed in profitability this year. While its internal numbers haven’t been independently audited, the sheer scale suggests the social media juggernaut in 2023 became one of China’s largest corporations by revenue. Its earnings before interest, tax, depreciation and amortization surged 79% to about $25 billion in 2022, the Financial Times reported in April, citing investors briefed on the number. Bytedance also operates a series of products popular with mobile users around the world, including TikTok, Topbuzz, Flipagram and a number of UGC short-form video apps.
Whispers in the trading world alluded to an IPO sometime in 2020, but the company says that the reports about a 2020 listing are false. Recent political scrutiny also will be a major headwind to a 2020 IPO – more on that in our Final Thoughts. 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.
China Tech’s Long March: Trade Deal Hopes Dimming
Is facing competition in the Southeast Asian country from the likes of TikTok and Shopee operated by Singapore-based Sea (SE). We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere. Also, we provide you with free options courses that teach you how to implement our trades as well. Our watch lists and alert signals are great for your trading education and learning experience.
Meta Platforms: TikTok Tick Tock…
Since buying TikTok or ByteDance stock from the stock market is impossible, investors might have other possibilities to invest in pre-IPO. Bytedances’ flagship product, Toutiao, is China’s largest AI-powered content platform. At a glance, Toutiao delivers personalized content recommendations to every user based on their interests.
ByteDance Offers to Buy Back $5 Billion Worth of Shares: SCMP
But Washington quickly shifted to issues like semiconductors and venture funding. EquityZen does not have an affiliation with, formal relationship with, or endorsement from any companies featured above. This profile is based on publicly available information and is intended to be informative in nature. Invest in or value your shares in one or many pre-IPO companies through an EquityZen investment vehicle. KKR originally invested in ByteDance, along with Softbank and General Atlantic, in 2018. It added to its position in another funding round at the end of 2020, valuing the company at $180 billion.
At roughly 30%, ByteDance would outpace the projected growth of far more established social media rivals Meta Platforms Inc. and Tencent, which is estimated to generate $86 billion in revenue this year. Neither TikTok nor its parent company, ByteDance, Ltd., are publicly traded companies, so neither has a stock symbol. Many Chinese tech companies face similar challenges regarding regulation, and any small start-up must overcome deep-pocketed competitors. As long as you understand those risks, investing in TikTok through a private equity asset management firm may be suitable for your portfolio. TikTok’s parent company, ByteDance, is an exciting business for investors. It popularized the short-form video format, built an incredible content-recommendation algorithm, and is working on new ad technology to monetize it.
As of November 2021, ByteDance was partially owned by global investors (60%), employees (20%), and co-founders Zhang Yiming and Liang Rubo (20%). SoftBank Group (SFTBY) is a Japanese technology and telecom conglomerate best known for its investment arm which focuses on disruptive technology. Its list of previous investments includes Alibaba (BABA), Nvidia (NVDA), Uber (UBER), Slack, and more. In exchange for funding the options, you will receive a percentage of future proceeds from any successful liquidity events.
The Indian government cited issues of privacy and national sovereignty. The company brought in $54 billion for the first half of the year. Get a daily email with the top market-moving news in bullet point format, for free. Since then, its IPO plans have been on ice and management has made no indication of when it will go public. In an attempt to alleviate concern, TikTok proposed Project Texas, which would move all U.S. data into a third-party cloud that only a team of U.S. residents could access. These fears have led the U.S. to prohibit the TikTok app from being on any federal government devices.
Today, we dive deeply into TikTok and the Stock Market, discuss how to purchase TikTok stock, and discover who owns TikTok. Meta Platforms Inc., with its array of platforms such as Facebook, Instagram, WhatsApp, and Oculus, has experienced consistent growth in its user base. As of Q1 2023, Meta’s most popular platform boasts a whopping 2.98 billion monthly active users, showcasing its immense popularity. It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career. We will help to challenge your ideas, skills, and perceptions of the stock market.
Investors need to plan for when the big social media companies lose their legal battles – Elevation Partners
But it’s also a high-risk investment because it faces potential challenges from regulators and deep-pocketed competitors. 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. In late 2023, ByteDance offered to buy back stock from shareholders for $160 per share, valuing the company at $223.5 billion. Now, TikTok is one of just 6 social media apps with more than 1 billion monthly active users. 2009 is committed to honest, unbiased investing education to help you become an independent investor.
How much is ByteDance stock?
Even companies like Goldman Sachs and Morgan Stanley have some exposure to ByteDance. Softbank Group may own a significant portion of ByteDance shares, and Kohlberg Kravis is a NYSE-listed investment firm which also owns a portion. Both of these private equity firms have an entire portfolio of investments of which 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. By funding employee stock options, investors like you can own stakes in private companies at past valuations. In exchange for funding the options, you will receive a percentage of future proceeds from successful liquidity events.