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TikTok Stock: Is Investing In Social Media Worth It?

At the end of 2020, it added to its position in another funding round, valuing the company at $180 billion. In late 2023, ByteDance offered to repurchase 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 and $180.70 in late 2024, which put its value back at $300 billion.

This growth has come with some risks, but the company has received positive feedback from investors and is on track to break even in 2019. A few years ago there were reports that ByteDance, TikTok’s parent company, was planning to go public, but that has yet to happen. But just because you can gain some slight exposure to TikTok doesn’t mean you should.

  • Most company shares are owned by private equity firms such as Coatue, General Atlantic, Hillhouse, Sequoia Capital, and Source Code Capital.
  • In 2021, TikTok was the most downloaded app of the year beating Facebook, Instagram, WhatsApp, and Messenger.
  • No, TikTok does not have a stock, as it is not a publicly traded company.
  • The length of these videos ranges between 15 seconds and 10 minutes.

Softbank’s shares trade on the OTC market in the US under the ticker symbol SFTBY. There are two ways to exit your private company investment on EquityZen’s marketplace. The first is if the company has an exit event like an IPO, merger or acquisition. In that case, we will distribute the shares and/or cash to you directly.

How to buy the ByteDance IPO

According to Bloomberg, ByteDance was valued at $300 billion by private investors. However, this valuation does not reflect its market value or how much it would be worth if it went public. EquityZen created the ticker symbols referenced on this page for use solely on the EquityZen platform. TikTok is a short-video sharing app and social network platform. Their mission is to capture and present the world’s creativity, knowledge, and precious life moments, directly from the mobile phone. TikTok enables everyone to be a creator, and encourages users to share their passion and creative expression through their videos.TIkTok is a subsidiary of ByteDance.

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While its parent company, ByteDance, has an estimated net worth of $250 billion. Most company shares are owned by private equity firms such as Coatue, General Atlantic, Hillhouse, Sequoia Capital, and Source Code Capital. ByteDance, the owner of TikTok, is not yet listed on the stock market. There is also no official stock price or stock symbol for it. It’s difficult to put an exact value on TikTok stock because it is still privately owned. So the financial records aren’t fully available to the public or audited to meet certain accounting standards.

Investing in social media is also risky due to the current political climate surrounding social media companies. Changes in legislation and company liability policies could greatly affect how social media companies develop in the next 5–10 years. WeChat has over one billion worldwide users and is ranked the fifth-largest social media platform by user volume. The platform has a surprisingly advanced set of video editing tools, which has allowed users to make some extremely creative and technically impressive videos.

Alternative investments to TikTok

The second way is through an Express Deal on EquityZen, if eligible. An Express Deal allows you to sell your allocation of private shares in a given private company to another investor on EquityZen’s marketplace. More information on Express Deals can be found here and exit information can be found here. Shareholders can sell their TikTok stock through EquityZen’s private company marketplace. EquityZen’s network includes over 370K accredited investors interested in buying private company stock. Learn more about the easy and guided Shareholder process here.

On the other hand, you’ll be able to buy as few or as many shares as you want, and you’ll have a chance to observe the stock’s market reception before you pull the trigger. That’s especially important if the company makes its debut during a generally weak market. That cuts your potential gains, but you’ll also have less risk. 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.

So it’s best for TikTok to strike while it’s at its peak in terms of users, revenue, and growth. Throughout this article, we’re going to take a look at the most important details relating to the firm so that you can decide whether you’d like to invest in TikTok. We’ll dive into all the key areas, such as the company statistics, revenue, active users, and everything you need to know about the TikTokIPO (initial public offering). No, TikTok does not have a stock, as it is not a publicly traded company. TikTok is owned by ByteDance, which is also a private company.

How to Invest in Private Companies

ByteDance valued itself at $315 billion in its buyback offered in March 2025. If/when ByteDance goes public, cmc forex broker you’ll be able to look up its stock symbol and buy it in your brokerage account. Temu’s surging popularity and growth potential have many wondering whether they can buy shares of its stock. If ByteDance has to sell its U.S. operations, its future earnings growth will be significantly curbed. This could also prevent it from profitably investing in better artificial intelligence (AI) and content to compete with Meta and others around the world. SoftBank bought its stake in ByteDance in 2018 in the same funding round as KKR’s initial investment.

Investing in Social Media

According to Reuters, its parent company ByteDance reported a net profit of $25 billion in 2022. If you want to own Tik Tok stock, buy shares of KKR or SFTBY. FinanceBuzz makes money when you click the links on our site to some of the products and offers that we mention.

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.

The US best crypto trading bot government isn’t the only country concerned with privacy issues from Chinese apps; India banned TikTok 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. Even though there’s no TikTok stock, traders can invest in several social media companies. The app is now available in over 155 markets in 75 languages.

Our goal at FinMasters is to make every aspect of your financial life easier. We offer expert-driven advice and resources to help you earn, save and grow your money. Vertigo Studio SA is not responsible and cannot be held liable for any investment decision made by you. Also, it’s worth keeping in mind that choosing stock on your own is not always a great idea, especially pre-IPO. 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.

  • Make a qualifying single initial deposit of $500 or more during the promotional period to get 20 fractional shares, each valued between $3 – $3,000.
  • So, most investors study the company’s reasons for going public, analyze their financial history, and determine risk tolerance.
  • Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
  • Sequoia Capital, General Atlantic, and Hillhouse Capital Group are all privately held companies.
  • In addition to its one billion active monthly users, it was the most-downloaded app in 2021, with 656 million downloads.

While you cannot own a share of TikTok at the moment, many social media platforms can be traded on the stock market. KKR & Co Inc is a public company that currently owns stock in ByteDance through a private funding round. So by buying shares in KKR, you’re getting a piece of the TikTok pie. It’s not a one-to-one investment in TikTok, but it is as close as you can get for now. As mentioned, TikTok is a private company, so its shares do not trade on the stock market. That said, there is a way you can invest in the company (without being a creator).

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Some or all of the offers that appear on this page are from third party advertisers from which FinanceBuzz receives compensation. This compensation may impact how Euraud correlation and where products appear on this site (including, for example, the order in which they appear). Instagram, for example, said it would “double down” on its competition with TikTok by promoting video content in its reel format. Snapchat, another competitor, continues to improve its video format known as snaps to appeal to some of TikTok’s user base. TikTok’s parent company, ByteDance Ltd., is a Chinese company founded in 2012 by Zhang Yiming. ByteDance is based in Beijing, China, though the company has offices in major cities worldwide, including New York, Los Angeles, Sydney, Mumbai, Paris, and Berlin.

These investments are made available by existing TikTok shareholders who sell their shares on our platform. Typically, these are early employees who need to fund a life event – house, education, etc. Accredited investors are then offered the opportunity to invest in this stock through a fund, like those used by hedge funds serving large investors. While not without risk, investing in private companies can help investors reach goals of portfolio diversification, access to potential growth and high potential return.

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