That said, ByteDance has received investment from SoftBank, a well-known investment firm. Softbank is keen to have a successful IPO amongst its investments, after Uber, Slack, and WeWork’s failures, and ByteDance will likely be their next bet. That means it’s reasonable to believe that ByteDance will go public at some point soon and therefore enable users to invest in TikTok.

For long-term investors, the price difference between a pre-IPO and a post-IPO purchase may not be large enough to justify the greater complexity and risk of buying early. If you’re in that bracket, a post-IPO purchase is probably the best way to go. You will not be able to sell your shares until the lockup period expires. The combination of popularity and controversy draws attention, and TikTok has become a highly recognizable brand for consumers and investors alike. An interesting feature of TikTok is that it uses artificial intelligence to analyze users’ interests and preferences and display personalized content to them.

Why do people want to invest in TikTok?

Again, this makes it more likely that the advertising campaigns will succeed and increase sales figures, ensuring companies keep spending money to advertise through TikTok. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its … None of the writers or contributors of FinMasters are registered investment advisors, brokers/dealers, securities brokers, or financial planners.

Utilize a pre-IPO platform

The TikTok IPO is one that’s going to attract both casual and experienced investors. Traders worldwide will hope to buy shares in TikTok when they become available. The company was looking to take advantage of its fast-growing popularity as one of the most downloaded apps in the world.

After registering, you can see the complete order book for every company on the platform. That includes all bids and asks, as well as the price of every recently completed order. What’s more, an early investment in any of the above platforms would have generated massive returns. The TikTok IPO date is still unknown, but investors worldwide are sure to be waiting on the edge of their seats for its announcement.

Share IG and get rewarded

1. This website is free to use but we may receive commission from some of the merchants mentioned.
2. Learn all about the 12 valuation ratios that allow investors to quickly estimate a business’s value relative to its …
3. TikTok is one of the world’s most successful and popular apps, even though it is just five years old.
4. Facebook and Instagram aren’t public companies either, but you can invest in their parent company.

As of Q1 2022, there were over 100 million monthly active users in the United States alone. However, the report notes that this would value the company at under $200 billion — far less than recent estimates of the company’s value. That’s why it’s essential to take these evaluations with a grain of salt since they often come with disclaimers of not knowing the real value of a privately held company. TikTok’s staggering user growth rate is one of the biggest reasons it might be a good investment if it eventually goes public. After all, TikTok is the fastest-growing social media platform of 2022.

So, it isn’t possible to buy shares of TikTok or ByteDance unless the company goes public. Various rumors have circulated about a possible ByteDance initial public offering (IPO), which is when a company becomes publicly traded on the stock market. ByteDance, TikTok’s parent company, is a private company and doesn’t have a proven market value. But it was reportedly worth $400 billion as of October 2021, according to anonymous private equity trades that were shared online.

These fears have led the U.S. to prohibit the TikTok app from being on any federal government devices. Additionally, at the state level, 34 out of 50 states have banned their employees from using the app on government-issued cell phones. KKR participated in ByteDance’s Series E funding round in October 2018. In total, 12 investors invested $3 billion at a valuation of $72 billion. Then, in December 2020, KKR participated in another round that raised $2 billion at https://forexanalytics.info/ a $178 billion valuation.

Start trading the ByteDance floor trader’s method (TikTok) grey market, before the potential IPO – long or short – with a live or demo account with IG today. The situation currently facing ByteDance and by extension TikTok remains highly fluid. Of course, while those financial firms evidently believe that ByteDance was a good investment at the time, the company has come under increasing scrutiny from a number of governments in 2020.

TikTok could send videos about hardware or tools to people who watch how-to videos for home improvement projects. Many people consider TikTok addictive because 90% of users claim to use the app daily. TikTok retains users at a rate of 26%; one out of four people who use TikTok becomes a regular user. Despite a ban in India, ByteDance, TikTok’s owner, claims to have exceeded 1bn monthly users. According to The Economist, on January 12, 2022, App Annie, a data gatherer, said TikTok caught up with Facebook in 2021 and overtook WhatsApp and Instagram in users’ time.

You want to be a successful stock investor but don’t know where to start. Snap is an American company, unlike ByteDance, so President Trump may not see Snapchat as a security threat. All of Snap’s intellectual property is presumably in American hands. Analysts think ByteDance powers TikTok with some of the world’s most sophisticated Artificial Intelligence (AI).

President Trump labeled Tencent’s WeChat as being from the United States and banned it in August 2020. As a certified market analyst, I use its state-of-the-art AI automation to recognize and test chart patterns and indicators for reliability and profitability. TikTok is one of the world’s most successful and popular apps, even though it is just five years old. In contrast, ByteDance released the app in 2016, and Mark Zuckerberg began Facebook in 2004. A similar initiative, called Project Clover, was proposed to store European data in Ireland and Norway. TikTok has also been banned from government devices in many European countries.

Luckily, TikTok’s business has been growing from strength to strength. This is good news because it means the company is more likely to carry out its IPO sooner rather than later. A drop in popularity would see a lower valuation, meaning less money could be raised.