Right now, TikTok is the fastest-growing social media platform, outpacing even Facebook and Snapchat in terms of user growth.
With over one billion monthly users and a value of over 75 billion dollars, claiming that they're taking over the social media world is an understatement.
This blog article will discuss if Tiktok is publicly traded.
TikTok is a social video-sharing platform. Its users produce short lip-sync comedy and talent videos, and these videos last between three and fifteen seconds. The app is famous for its addictive appeal and high levels of engagement due to its tailored feeds of wacky short videos paired with music and sound effects. Amateur and professional artists alike may enhance their videos with effects such as filters, background music, and stickers and collaborate on material and make split-screen duet videos despite their geographical separation.
TikTok is the worldwide counterpart of Douyin, which started in the Chinese market in 2016. Later in 2017, as a result of its popularity, it was rebranded as TikTok and introduced outside of China. While the applications are identical, they are hosted on different servers to adhere to Chinese censorship laws.
A unique characteristic of TikTok is that it analyzes users' likes and preferences using artificial intelligence. Users enable TikTok to show tailored material to them by their interactions with the content.
Who owns TikTok?
ByteDance is the developer of this smartphone app. ByteDance is a 2012 startup located in Beijing. TikTok is owned by ByteDance Limited, a Chinese privately held business; additional investors include Sequoia Capital China, General Atlantic, Hillhouse, KKR, SIG, SoftBank, and Source Code Capital.
The Story of TikTok
TikTok, which was launched in its current incarnation in 2018, quickly ascended to the ranks of social media heavyweights. According to Wallaroo Media, it has been downloaded more than 200 million times in the United States by the beginning of 2021, when it crossed the one billion monthly active user mark internationally.
A common concern across social media platforms is the potential misuse or exploitation of the private information they acquire from their users. TikTok is no exception. TikTok is unique in that Chinese investors hold the bulk of the company.
TikTok is not comparable to Facebook. Facebook launched in 2004 and continues to exceed all other social media platforms in terms of audience numbers and advertising income. By the beginning of 2021, it had 2.6 billion monthly active users, not including the parent company's WhatsApp and Instagram properties. In the first quarter of 2020 alone, it generated $17.4 billion in advertising revenue. Globally, around 80 million small companies have Facebook pages.
Thus, how does a competitor in the social media industry compete? For starters, dazzle the younger demographic with an endless supply of quick, snappy entertainment that will attract advertisers seeking to reach them. Only 7.1% of TikTok users are beyond the age of 50.
Facebook caters to a broad cross-section of generations, and that is admirable, but marketers pursuing young audiences are not recognized for their kindness. Not Facebook, but TikTok, has the target demographic that businesses and the marketing firms that serve them want right now.
TikTok's business plan blends a traditional social media platform approach focused on content sharing with a creative platform focused on video creation and sharing. It is a cross between Instagram, Facebook, and YouTube in terms of functionality.
TikTok is unique in that it is driven by artificial intelligence. When users interact with the material, the app records their interactions and feeds them into TikTok's machine learning algorithm. This allows the app to improve the quality of users' content feeds and overall content experience, which the business says increases engagement and provides more data.
'Our objective,' according to TikTok, is to 'collect and showcase the world's creativity, wisdom, and priceless life events straight from the mobile phone.'
TikTok's business model has also had to adapt to the new legislation in other nations. TikTok cut its personnel in India after its prohibition in order to mitigate their losses. And in response to the US-China tensions, ByteDance ring fenced TikTok from all of its China-based assets in order to comply with US legislation governing its activities.
How does TikTok generate revenue?
Beyond those regulatory concerns, ByteDance's TikTok, like the majority of social media firms – including Facebook, Twitter, and Snapchat - derives the bulk of its revenue from advertising.
With a large number of highly engaged users, the attractiveness of advertising on TikTok is obvious – particularly if the goal is to target a younger market. According to Later, the five sorts of TikTok advertisements available to advertisers include in-feed commercials, TopVIew, sponsored hashtag challenges, and branded effects.
Advertisers have flocked to ByteDance's several product offerings over the past year, with Reuters reporting that the company's income more than quadrupled year over year in the company's first quarter of fiscal 2020.
ByteDance is said to have earned US$5.64 billion (40 billion yuan) in revenue for the quarter ended March 2020 - a remarkable gain of 130 percent.
How did TikTok Become So Popular?
Currently, the app is accessible in over 150 markets and 75 languages. According to a recent poll, Tiktok is more popular than Instagram. TikTok's increasing popularity has created a challenge for Facebook, Snapchat, and Instagram. Instagram developed a feature called Reels to compete with TikTok, and Reels are extremely similar to TikTok's features.
TikTok gained popularity among content makers because of its minimal entry hurdles. A person does not have to be a professional to start their own channel. The majority of the videos are supposed to be silly and enjoyable. This resulted in the rapid mass adoption of the app among producers, who may make money with little financial or time input.
TikTok videos are typically 10-15 seconds long. As a result, the cost of creating a video is reduced. The app's popularity was aided by the machine learning-enabled recommendation engine.
TikTok's growth has been exponential since it launched outside of China in 2017. As of October 2018, TikTok is the first Chinese app to become the most popular app in the United States.
The app has been accessible in over 150 markets and 75 languages since 2018. Globally, the app reached 1 billion downloads in 2019, an incredible milestone, and TikTok will exceed 2.5 billion worldwide downloads in November 2020. There were approximately 90 million monthly active users in the United States alone as of July 2020.
It's easy to see how these statistics garnered significant media attention and exposure.
TikTok was the top downloaded app in the first quarter of 2021, surpassing Facebook, Instagram, WhatsApp, and Messenger. This indicates that TikTok is posing a significant threat to Facebook. Tiktok made history by becoming the first Chinese app to accomplish this feat. In August 2020, Instagram, a product of Facebook, released Instagram Reels, which is largely seen as a TikTok clone.
However, one of TikTok's issues is monetizing the site. Additionally, it must enable its influencers to make money via advertising or by the views they get from their followers.
However, TikTok's sales for 2019 surpassed US$17 billion, with a remarkable $3 billion in net profit, owing to its over 1.5 billion monthly active users.
No, TikTok is still privately owned, which means that its shares are not yet publicly traded. TikTok shares are not traded on the stock market because ByteDance Limited, the company that owns TikTok, is privately owned. You may invest in private equity firms that possess TikTok stock. Yiming Zhang, the creator of TikTok, Bytedance, and seven private equity companies, holds shares in the company: Coatue, General Atlantic, Hillhouse, KKR, Sequoia Capital, Softbank, and Source Code Capital.
Does TikTok have a Stock Ticker?
Because TikTok is not publicly listed on a stock market, it does not have a ticker symbol or a stock name, and stock tickers are unique to firms that are listed on stock exchanges.
While TikTok is one of the world's most popular social media sites, its parent firm, ByteDance Ltd., is not planning to go public anytime soon.
According to The Wall Street Journal, ByteDance's interest in an initial public offering has been put on hold indefinitely after Chinese government officials requested the business resolve many problems, including data security vulnerabilities. However, ByteDance Limited did not rule out the possibility of TikTok Global going public in the United States through an initial public offering or IPO. There is currently no firm timeline for when this project will begin.
Apart from that, several details about the TikTok Global IPO remain unknown, including its ticker symbol and the stock market on which it will trade. However, if we look at other Chinese firms, such as Alibaba, we may predict that TikTok Global will soon list on the New York Stock Exchange (NYSE).
It's worth mentioning, however, that after the deal is met, the firm will keep around 80% of the total TikTok shares.
For others, the notion that a 20% stake in TikTok Global may be worth $60 billion or more is implausible if they are uninformed of the considerations that went into this assessment.
According to one of ByteDance's press releases, the app has been a success in terms of self-marketing. It increased from 11.263 million users in January 2018 to moreover 100 million in August 2020. India is regarded to have the largest TikTok user base, with app users increasing to 611 million in 2020 alone.
Additionally, around 150 million individuals use Douyin, TikTok's Chinese counterpart, on a daily basis. According to Obelo, 41% of users globally between the ages of 16 and 24 possess a TikTok account, allowing the firm to grow into 155 more countries by 2019.
Analysts think that these figures increased as a result of TikTok's practical algorithm, which leverages the machine-learning platform to monitor and then identify videos that users would be interested in viewing.
As a result, Business of Apps revealed that the firm had a 26 percent retention rate, with an average user spending at least 52 minutes each day inside the app. According to Business of Apps, Android users spent 68 billion minutes on the app in 2019, despite being exposed to over 1 billion videos daily.
Finally, TikTok Global's valuation may expand as more analysts see the TikTok algorithm's potential in the e-commerce industry, where clients are likely to be tempted to acquire a product, hence increasing a company's net profit.
How to invest in TikTok?
Is There a TikTok Stock? While you cannot currently hold a share in TikTok, several other social media networks are listed on the stock market.
1. Netflix (NFLX)
Netflix benefited handsomely as one of the stock markets' "heroes" during the early days of the Covid-19 crisis.
True, it was a cynical advantage, with the prospect of illness hastening the cord-cutting trend. Additionally, it helped those professional ( and college ) sports organizations halt or delay their seasons, allowing for the growth of internet entertainment providers.
Naturally, NFLX was one of those monikers. It's also one of the TikTok stocks, owing to the company's successful use of social media.
Similar to how SNL utilizes TikTok to generate anticipation in forthcoming episodes, Netflix uses TikTok to deliver behind-the-scenes videos for viewers. Additionally, the app helps users better understand the individuals that represent certain interesting roles.
Financially, the firm continues to expand. However, sustaining pace in terms of subscriber count has been a major concern in light of the company's most recent financial presentation.
Investors are plainly nervous, as NFLX is down more than 36% year to date. Personally, I'd like to wait a little longer for the volatility to subside. However, once it does, the streaming service is worth considering as one of the TikTok stocks to buy.
2. Facebook.Inc
Facebook is a social media corporation based in the United States that is best known for its social networking service. Its remarkable aspect is that it connects individuals from all around the globe.
Facebook went public on May 18, 2012, for $38. By the end of October 2020, Facebook's market capitalization will be $749.55 billion.
Facebook's earnings increased to $4.9 billion from $1.9 billion the prior year.
3. Twitter (NYSE: TWTR)
Twitter is another significant social media player and one of the most widely used applications worldwide, with celebrities, journalists, and others among its users.
At the moment, it has around 330 million monthly active users. Indeed, Twitter has developed into a kind of breaking news website. Highly recognized journalists break stories on Twitter, and many individuals report that the app is their primary source of news and conversation.
By 2020, Twitter will have more than 330 million monthly active users and over 500 million tweets each day (6,000 per second).
4. Pinterest Inc.
Pinterest Inc. is headquartered in San Francisco, California. It is a photo-centric social networking tool that is used to discover new recipes, fashions, and hacks.
Pinterest is now a New York Stock Exchange company. Pinterest's market capitalization is $35.4 billion as of October 30, 2020.
Since going public last year, the firm has failed to earn a profit.
5. Comcast (CMCSA)
With the introduction of video-sharing sites like YouTube and TikTok, young people are less likely to seek amusement from conventional media channels than earlier generations were.
This has left a number of "tethered" media behemoths perplexed. As it turns out, some established entertainment firms are waging a losing battle. Enter Saturday Night Live, a stalwart of network television for decades.
SNL takes advantage of this chance to provide fans with access to behind-the-scenes apps. This garners more attention than the program would most likely garner on its own.
6. Snap Inc.
Snap Inc. is a well-known American technology business formed on September 16, 2011. Users may use Snapchat filters to create snaps and share them with their pals.
Snap Inc. was listed on the New York Stock Exchange on March 2, 2017. Snap's market capitalization is $57.87 billion as of October 30, 2020.
For the previous two years, Snapchat has been losing money. Its losses increased to $326 million in the current fiscal year, up from $229 million in the previous fiscal year.
How to trade the TikTok IPO?
Once TikTok gets listed, its shares will be traded in the same manner as any other company on the market.
Meanwhile, you may trade shares with Top1Markets.com by following these simple steps:
Create an account with Top1Markets.com or log in if you are currently a client.
In our award-winning platform, do a search for the firm with whom you want to deal.
Select your desired location and size and your desired stop and limit levels.
Place the transaction.
Final Words
Regrettably, you cannot purchase TikTok stock.
TikTok is owned by the privately held Chinese business ByteDance. There is a possibility that TikTok may go public in the near future, and we will keep this page updated with any new information. However, you will need to make prudent investments in other social media firms in the meantime.
FAQs
Is ByteDance financially viable?
As a private corporation, determining the precise revenue generated by TikTok and its parent firm might be challenging. TikTok was predicted to generate around $1 billion in revenue by 2020. However, this represents a small portion of ByteDance's total income for the year, which was around $30 billion.
TikTok's current anticipated worth ($50 billion) values the company at 50 times its existing sales. However, Reuters reports that the company's management hopes to generate $6 billion in sales by 2021.
What is the value of TikTok?
TikTok is owned by ByteDance, a privately-held Chinese technology business. ByteDance was initially valued at $75 billion, but after recent private share transactions, its worth soared to China over $100 billion in May 2020.
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