How to buy TikTok stock
TikTok is a product created by ByteDance. ByteDance is a Chinese multinational internet technology company operating a range of content platforms, including TikTok, Helo, and Resso, as well as platforms specific to the China market, including Toutiao, Douyin, and Xigua. Off the back of TikTok’s explosive growth as well as the company’s other core product offerings, ByteDance has attracted a significant number of high profile investors over the last few years.
How to buy TikTok stock when it goes public
ByteDance is still privately held, meaning its shares are not available on the stock market yet. We'll update this page with information as it becomes available.
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. That means it’s reasonable to believe that ByteDance will go public at some point soon and therefore enable users to invest in TikTok.
Since it’s not possible to buy TikTok stock from the stock market, there might be other possibilities for investors to invest in ByteDance pre-IPO. Some platforms like EquityZen provide a secondary market for pre-IPO equity. Another possibility is investing in a private equity fund that invests in companies like ByteDance in venture capital rounds. However, the issue with these private equity funds is that they usually require an investor to be a high-net-worth individual. That said, waiting for ByteDance to become public seems to be the simplest route to invest in TikTok.
Once TikTok goes public, you'll need a brokerage account to invest. The primary distinctions between different trading brokers are primarily in fees and resources supplied. Many of the best trading platforms offer zero commission trading. Make sure you only buy TikTok stock with a well financially regulated broker. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.
What is TikTok stock worth?
Launched in its present form in 2018, TikTok joined the ranks of social media giants in record time. It had about one billion active monthly users worldwide by the start of 2021, according to Wallaroo Media. With over 2.5 billion installs in more than 150 different markets, TikTok is a very valuable app.
ByteDance was reportedly worth up to $140 billion by mid-2020, based on the private sale of a small stake in the company. TikTok alone was said to be worth about $50 billion. That would make it the most valuable startup in the world.
More interestingly, in Q1 2021, TikTok was the most downloaded app beating Facebook, Instagram, WhatsApp, and Messenger. This means that TikTok is becoming a major threat to Facebook.
Should I invest in TikTok?
Unlike a company like Facebook, Disney or Walmart, TikTok is far from a “blue chip stock.” Combined with the high valuation and the fate of similar companies that have gone before (e.g., Vine), TikTok solidly resides in the “high-risk/high-reward” camp. The bottom line is that any investment in TikTok at this time would have to be considered very speculative.
