TikTok Stock Price

TikTok is a well-known video-sharing social networking service owned by ByteDance. ByteDance is a privately-held company whose shares are not publicly available. That’s why an official TikTok stock price does not exist before its IPO.

TikTok is an international version of an app called Douyin from 2016. In 2017 TikTok was launched for iOS and Android in most markets outside of mainland China.

TikTok was launched globally only after merging with another Chinese social media service Musical.ly on August 2, 2018.

Since its launch, TikTok has seen a phenomenal rise in its’ userbase. It gained rapid popularity in South Asia, East Asia, Southeast Asia, United States, Turkey, and Russia. As of October 2020, TikTok registered over 2 billion mobile downloads worldwide.

Due to this phenomenal rise of TikTok, ByteDance has become one of the most valuable companies worldwide. Hence, the investors are looking for an exit through an initial public offering. ByteDance is likely to go public in 2021.

What is TikTok?

Tiktok is a preferred app to create and share short videos. Tiktok users can produce 3 to 15 seconds of short videos. Most of the videos are released as a personalized lip-synced version of the other popular music or videos. Though, TikTok has original content contributors too.

TikTok users can create duet videos, which appear side by side to the original video on a split-screen. The app also provides unique effects such as filters, background music, and stickers.

TikTok uses artificial intelligence and machine learning to upgrade its system. Using those technologies, the company evaluates the preferences of its users. The users are then recommended videos based on their view history.

How to Analyze and Trade TikTok Shares

Stock research websites are the best place to start researching specific IPOs. The stock analysis websites allow you to set up alerts for specific news about a company. You could set up an alert with the combination of the company name and the term IPO, for example, “TikTok IPO.”

As an exchange-listed company, TikTok would be one of the best stocks to invest in right now. The best stock charting software can be used for a more extended due diligence process before making the final decision.

Then, you can use the best brokerage apps during the IPO. The chances are that you get some stocks at the original IPO price. Alternatively, you can buy and sell your preferred number of shares on the IPO data or at any time later by using the official stock ticker symbol within your trading platform.

Once invested, you can use your brokerage account or one of the best stock tracker to manage your positions within the portfolio.

Why is TikTok That Popular?

In October 2018, the service became the most downloaded app in the US. At the end of 2019, Tiktok became the most downloaded application of the decade. Tiktok created history as it was the first Chinese app to achieve this milestone.

The app is currently available in more than 150 markets in 75 languages. In a recent survey, Tiktok was found to be more popular than Instagram. This growing popularity of TikTok has become a threat to Facebook, Snapchat, and Instagram. To compete with TikTok, Instagram launched a feature called Reels, which is very similar to TikTok features.

TikTok became popular among content creators as the barriers to entry were low. One is not required to be a professional to launch their own channel. Most of the videos are expected to be goofy and fun. This enabled a fast mass adoption of the app among creators, who can earn money with a minimal investment of capital or time.

TikTok videos are short, generally of 10-15 seconds. Hence, the cost of producing a video is lower. The machine learning-enabled recommendation engine helped popularize the app to the masses.

Who Owns Tiktok?

Bytedance is the owner of the videos sharing services app and Tiktok. Vanessa Pappas is the current TikTok CEO following Kevin Mayer’s resignation on August 27, 2020.

Back in 2018, Japan’s richest man, Masayoshi Son, invested in ByteDance through SoftBank venture fund. Post SoftBank investment, ByteDance’s valuation touched $75 billion.

ByteDance is 40% owned by US venture capital firms. Some of the investors are Goldman Sachs, GGV Capital, General Atlantic, and Tiger Global Management.

What Happened to Tiktok in The US?

TikTok became a victim of the US-China trade war, which led to concerns about security and data storage policy. Concerns were raised that TikTok data could be misused.

Last year the US government launched a review of how ByteDance may be used for foreign influence campaigns, and an executive order targeting Tiktok was published. The ruling stated that Tiktok would be blocked from handling transactions for US residents. On August 14, the U.S.-president again said that TikTok would be banned if it is not sold to US investors by November 14, 2020.

Oracle is expected to buy a 12.5 percent stake in TikTok Global in a deal thought to be worth over $7 billion. The grocery magnate Walmart is expected to get another 7.5 percent equity.

After these investments, ByteDance will still own 80 percent equity in TikTok. Will that appease the US government? Given that ByteDance is half-owned by US private equity firms, practically the US does have more than a 50% ownership in TikTok.

Tiktok IPO

TikTok is up for an initial public offering (IPO), post which retail investors will also invest in the company. A Tiktok Global IPO will most likely occur in the US.

It is likely that the parent company of TikTok, ByteDance, will also go public. The IPO of Bytedance is expected to be launched in Shanghai and Hongkong.

TikTok Alternatives

Snap Inc.

Snap Inc. is a popular American company, which was founded on September 16, 2011. Snapchat filters allow users to take snaps and share it with their friends.

Snap Inc. became public on March 2, 2017, and was registered at the New York Stock Exchange. As of October 30, 2020, the market cap of Snap is $57.87 billion.

Snapchat has been in losses for the last two years. Its losses grew to $326 million from $229 million last fiscal year.

Pinterest Inc.

Pinterest Inc. is based out of San Francisco. It is a picture-focused type of Social networking service used to search for ideas for foods, styles, and hacks.

Pinterest is currently listed on the New York Stock exchange. As of October 30, 2020, the market cap of Pinterest is $35.4 billion.

Since last year, when it went public, the company hasn’t posted any profit yet.

Facebook.Inc

Facebook is an American social media company famous for its social networking service. It has a stunning feature of connecting people across the world.

On May 18, 2012, Facebook went public for $38. By the end of October 2020, the market cap of Facebook is $749.55 billion.

Compared to the previous year, the profit of Facebook has doubled to $4.9 billion.

Twitter Inc.

Twitter is an American social network service where people post their thoughts in limited words called tweets.

As of October 30, 2020, the market capitalization of Twitter is $32.17 billion. The company is also listed on the New York Stock Exchange.

Twitter is the most profitable social network service. Recently it announced a net profit of $106 billion. Twitter aims to welcome 2021 with about 182 million daily users.

TikTok Stock Price Summary

The TikTok pre IPO can be expected soon. Shareholders and private equity funds are interested in the company stock. It might be needed to proceed with certain venture capital rounds first to gain capital further. The ByteDance pre IPO is another exciting opportunity. The Tiktok video app is an excellent platform for active users and belongs to the fastest growing valuable social media tools. The stock market is ready for share transactions enabling traders to buy or sell TikTok stock with a brokerage account to grow value over time.

The future of TikTok is shrouded in uncertainty. Many things are going for TikTok. A great bunch of initial investors and a massive appeal among users.

However, due to US-China tensions, TikTok’s future seemed threatened. Apart from the US, TikTok was also banned in other countries such as India.

ByteDance has not yet confirmed the IPO of TikTok. Only time will tell what holds for TikTok. Until then, we can enjoy their AI recommended videos.

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Updated: September 13, 2021

About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.