TikTok Stock: Is Investing In Social Media Worth It?

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. Facebook is currently the world’s largest online social network, with over 2 billion monthly active users. How its users engage is much different than TikTok in that they exchange messages and share news events, photos, and videos. On the video side, the company is building a library of premium content and monetizing it via ads or subscription revenue, which is smart.

The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members. “ByteDance is one of the world’s most highly valued privately held startups right now, with a current valuation of around 75 billion dollars”. 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.

SoftBank Group

Our estimates are based on past market performance, and past performance is not a guarantee of future performance. The company’s shares have rallied to new highs this year as investors warm up to the potential of these initiatives and their positive impact on future growth prospects. Investors should watch for updates from Meta regarding the progress of its various projects that could provide further upside potential to share prices. You can invest in TikTok by buying shares in SoftBank or KKR, which owns stock in ByteDance, TikTok’s parent company.

TikTok’s Valuable Algorithms

The algorithm identifies the videos that users are most likely to watch. With lightning-fast charts, powerful pattern recognition, smart screening, backtesting, and a global community of 20+ million traders — it’s a powerful edge in today’s markets. Some American brokers allow trading in markets outside of the country.

If you’re looking to build long-term wealth, a better strategy may be to invest in funds that hold the stock of many companies, such as index funds or exchange-traded funds. Our partners cannot pay us to guarantee favorable reviews of their products or services. Liberated Stock Trader, founded in 2009, is committed to providing unbiased investing education through high-quality courses and books. We perform original research and testing on charts, indicators, patterns, strategies, and tools.

If you’re an accredited investor, you can invest directly in ByteDance (more info below). If you don’t qualify as an accredited investor, skip to the second section, which is for retail investors. Although the future of TikTok in the U.S. is uncertain, ByteDance as a whole appears to be years away from a public offering.

  • All of Snap’s intellectual property is presumably in American hands.
  • Tencent Holdings Limited, the Chinese multinational conglomerate, has been active in the news, and several recent developments have affected its business.
  • The plan gives negotiators 120 days to finalize a deal that would see a group of mostly American investors — including Oracle and Silver Lake — take control of TikTok’s U.S. business.

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In a digital age with apps-galore, one company in particular has burst onto the scene in the last few years – TikTok. In an already competitive social media market, TikTok has quickly established itself as a fan favourite, especially amongst Gen Z users. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.

b) Invest in SoftBank Group (SFTBY)

TikTok is not listed on a stock exchange and you cannot buy its shares – at least not directly. One of the reasons why ByteDance may not be in a hurry to go public is invest in emerging stocks that it is already profitable and cash-rich. Another reason why ByteDance may not be ready to go public is that it faces several regulatory and legal challenges in different markets. For instance, in 2020, TikTok was threatened with a ban in the US by the Trump administration, which accused it of posing a national security risk due to its Chinese ownership. ByteDance was founded in 2012 by Zhang Yiming, a former software engineer and entrepreneur. The company has grown rapidly in recent years, thanks to its innovative use of artificial intelligence and machine learning to create personalized content for its users.

Regulatory risks and established competition aren’t unique to TikTok. 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. But ByteDance is just a small portion of the firm’s overall portfolio.

  • More interestingly, this Internet start-up giant uses Artificial Intelligence to claim its foothold in the global social media networks of the world.
  • Every day, hundreds of stocks are ripe for trading, that is, if you know how to find them.
  • As the tech start-up industry goes, so does SoftBank’s portfolio.

NYSE: KKR

There is no official announcement or timeline for when TikTok or ByteDance will go public. However, some analysts and investors believe that ByteDance will eventually go public, as it could unlock more value for its shareholders and employees. KKR is an American investment firm that specializes in leveraged buyouts, mergers and acquisitions, and other transactions.

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. In its most basic form, TikTok is a video-sharing social media app.

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 tech sector. Some of those social media companies are proven money makers, unlike TikTok Global. ByteDance, the owner of TikTok, has offered to buy back shares, which suggests that an IPO may not be imminent.

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