TikTok had a meteoric growth in popularity when it was first introduced. It quickly became well-liked in many countries, including Western Hemisphere, Eastern Europe, and Asia.
As a result, TikTok has had over 3.5 billion smartphone downloads throughout the globe as of September 2022.
As a result of TikTok’s meteoric development, ByteDance is now among the world’s most valuable businesses. Because of this, an IPO is considered a means of providing an exit for investors.
Although ByteDance was expected to begin trading publicly in late 2021 or early 2022, that hasn’t happened yet.
The Story of TikTok
Tiktok is widely considered the best app for making and sharing short movies. Users of Tiktok may create films that are between 3 and 15 seconds in length. Most of these videos are published as custom lip-synced versions of existing songs or videos. While some of the videos on TikTok are uploaded by users, others are created by the platform’s community.
Create a duet video with another user on TikTok, and you may watch it together on a split screen. Filters, sound effects, and stickers are just a few special effects that may be used in the program.
For system improvements, TikTok relies on AI and ML. The business may gauge customer preferences by using these tools. Video content is then suggested to the viewers depending on the videos they have already seen.
Success of TikTok: What Makes It So Unique?
The service surpassed all others in the United States app store in October 2018. As 2019 drew to a close, Tiktok surpassed all other apps in downloads to become the most popular of the decade. When Tiktok became the first Chinese app to reach this benchmark, it made history.
The app may be downloaded in over 150 countries and 75 different tongues. Tiktok was determined to be more popular than Instagram in a recent poll.
TikTok’s meteoric rise poses a serious challenge to established social media platforms like Facebook, Snapchat, and Instagram. To compete with the app, Instagram has introduced a new feature called Reels, which is highly similar to features on TikTok.
Due to its minimal entry hurdles, TikTok quickly gained popularity among content providers. Starting a channel requires no prior experience and can be done by anybody. In general, the videos will be lighthearted. Because of this, the app saw rapid, widespread acceptance among artists, who can now make money with nothing in the way of upfront costs or time commitment.
The typical length of a TikTok video is about ten to fifteen seconds. As a result, the expense of making a film is reduced. The app’s widespread success may, in large part, be attributed to its sophisticated recommendation engine, which makes use of machine learning.
Who owns the TikTok app?
Bytedance owns the video-sharing app and website Tiktok. Since Kevin Mayer’s departure on August 27, 2020, TikTok has been led by Vanessa Pappas in that role.
ByteDance received funding from Japanese tycoon Masayoshi Son’s SoftBank VC fund in 2018. The value of ByteDance after the SoftBank investment was close to $75 billion.
American venture capital companies hold a total of 40% of ByteDance. Goldman Sachs, GGV Capital, General Atlantic, and Tiger Global Management are just a few of the investors.
IPO Date for TikTok
After TikTok’s IPO, the firm will be open to investments from regular people. The United States is the most probable location for a Tiktok Global IPO.
ByteDance, TikTok’s parent firm, is also poised to go public. As a result, Bytedance’s IPO will likely debut in those two financial hubs, along with Hong Kong.
Alternatives to the Video Sharing App TikTok
On September 16, 2011, Snap Inc. was established as a successful American business. Snapchat’s photo-editing features, known as “filters,” make it easy to create and share unique photos with loved ones.
On March 2, 2017, Snap Inc. joined the New York Stock Exchange and officially became public. Snap has a $19.19 billion market capitalization as of September 2, 2022.
For the last two years, Snapchat has been losing money. The previous fiscal year’s losses increased from $229 million to $326 million.
Founded in 2010, Pinterest Inc. has its headquarters in the Bay Area. Instagram is a photo-sharing social networking site where people go to find new recipes, outfits, and life tips.
You may buy shares on Pinterest on the New York Stock Exchange. Pinterest will have a $15.31 billion market capitalization as of September 2, 2022.
Founded and headquartered in California, Facebook has quickly become one of the most recognizable brands in the world of social media. But, incredibly, it can link individuals from around the globe to one another.
On May 18, 2012, Facebook went public for $38 per share. Facebook has a market capitalization of $444.41 billion on September 2022.
Facebook’s earnings have doubled, to $4.9 billion, from the previous year.
People share their opinions in short messages (or “tweets”) on Twitter, a social networking site based in the United States.
Twitter is worth $29.55 billion on market capitalization as of September 2022. The company’s stock may also be found on the New York Stock Exchange.
Profitability metrics show that Twitter dominates all other social networks. It just reported a $106 billion net profit. When 2021 rolls along, Twitter hopes to have 182 million active users.
Threat to Ban Tiktok and Other Events
Security and privacy issues for TikTok were exacerbated by the ongoing trade dispute between the United States and China. As a result, concerns were voiced about the possible exploitation of TikTok data.
A probe of potential ByteDance usage in foreign influence activities was initiated last year, and an executive order directed against Tiktok was released. According to the verdict, Tiktok would be unable to process payments from US citizens. In addition, the U.S. president reiterated his threat to ban TikTok on August 14 if the app was not sold to U.S. investors by November 14, 2020.
To almost $7 billion, Oracle is purchasing a 12.5% share in TikTok Global. In addition to its current stake of 37.5 percent, Walmart is set to get another 7.5%.
ByteDance will still hold 80% of TikTok after these investments. So, could it possibly satisfy the United States government? When you consider that US private equity companies control a majority stake in ByteDance, the United States effectively owns more than 50% of TikTok.
Tutorial on TikTok Stock Trading
A stock research website is the best place to begin learning about individual IPOs. You may sign up for stock research websites’ alerts to get notifications when certain events occur about a firm. For example, if you want to be notified when a particular firm goes public, you may create an alert with the company’s name and the phrase “IPO,” as in “TikTok IPO.”
If TikTok were a publicly traded firm, it would be an excellent choice for investment. However, with the most satisfactory stock charting software, you may spend time researching a purchase before making a final decision.
After then, you’ll be able to use top-tier brokerage applications throughout the IPO. You may be able to purchase some shares at or around the IPO price. You may also buy and sell shares at your convenience using the official stock ticker symbol on your trading platform, whether at the time of the IPO date or a later date.
After making an initial investment, you may monitor your holdings in the portfolio via a stock tracker or your brokerage account.
Final Thoughts on TikTok’s Stock Price
Soon, TikTok will have a pre-IPO. The corporation’s stock is of interest to shareholders and private equity investors. To raise more money, it may be necessary to complete a particular number of venture capital rounds first.
Here’s another promising prospect: the pre-IPO release of the ByteDance platform. The Tiktok video app is one of the most popular and rapidly expanding social media platforms for engaged users.
Stock market trading is now open, so interested parties may use a brokerage account to acquire and sell shares in TikTok and participate in the company’s long-term value creation. TikTok’s future is clouded in mystery. Nevertheless, TikTok has a lot going for it. There was an impressive group of early backers, and the interest from users was through the roof.
However, TikTok’s future seemed bleak as a result of US-China tensions. As a result, TikTok was prohibited in the United States and other nations, including India.
ByteDance has not verified TikTok’s IPO status as of yet. So what is ahead for TikTok is unknown at this moment. Meanwhile, we may watch the videos picked out for us by their AI.