TikTok Stock: Is Investing In Social Media Worth It?
Around the same time, ByteDance spent $1 billion to acquire the Shanghai company Musical.ly, a video platform that lets users create short, lip-synced music videos. Yes, we work hard every day to teach day trading, swing trading, options futures, scalping, and all that fun trading stuff. But we also like to teach you what’s beneath the Foundation of the stock market. We also offer real-time stock alerts for those that want to follow our options trades.
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. AGNC Investment is a real estate investment trust (REIT) focused on investing in residential mortgages. Those credit protections make MBS very low-risk fixed-income investments.
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- If you want to own Tik Tok stock, buy shares of KKR or SFTBY.
- Some observers, including the management teams at Microsoft (MSFT), Walmart (WMT), Oracle (ORC), and ByteDance, think otherwise.
- If you want to get exposure to other social technology companies right now, you can choose between stocks such as Snap Inc, Pinterest, Facebook and Twitter.
- SoftBank Group (SFTBY) is a Japanese technology and telecom conglomerate best known for its investment arm which focuses on disruptive technology.
- This is done to further invest in the growth of the business or even pay off debt.
- We know that you’ll walk away from a stronger, more confident, and street-wise trader.
The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. You can buy and sell, date, write blogs, grow fan pages, build groups…the list goes on. Advertising ecn broker overview characteristics and advantages revenue represents over 90% of FB’s revenue, with 50% coming from the US and Canada and 25% from Europe. With gross margins above 80%, Facebook operates at a 40%-plus margin. On April 23, 2024, the US Senate voted to ban TikTok if ByteDance doesn’t remove itself from ownership.
Also, China’s recent crackdown on tech companies could mean further problems or obstacles. If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review. The TikTok app has also been the starting point for many of the most recent viral crazes and influencer-driven content. Initially, the app was called ‘Musical.ly’, starting out as a lip-syncing video app. Acquired by ByteDance in 2018, the app was rebranded as TikTok. People with a financial plan have a higher net worth and more financial confidence.
It allows TikTok users to create short videos and share them with friends, family, and fans. You cannot currently buy or sell TikTok stock, as it’s a private company. That said, there’s a way to invest in TikTok on the stock market. We’ll give the complete breakdown of TikTok, how to invest in it, and some competitor stocks that could be a solid alternative. TikTok stock could be a great option for investors looking to cash in on the social media craze. But can you actually buy shares of TikTok on the stock market?
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MBS investments also have a relatively low return profile (typically in the low- to mid-single digits). However, mortgage REITs, like AGNC Investment, can enhance their returns by investing in MBS on a leveraged basis (i.e., borrowing money to finance additional MBS investments). It’s difficult to put an exact value on TikTok stock because it is still privately owned. So the financial records aren’t fully available to the public or audited to meet certain accounting standards.
Snap Inc., the parent company of the popular social media platform Snapchat, has made recent business news with several key developments. One significant piece of news is Tencent’s cost-cutting measures and strategic shifts in response to a challenging regulatory environment and a slowdown in the tech sector. The company has been reducing its workforce in some areas and selling off portions of its investment portfolio, including a stake in Meituan, to raise capital. This move to sell part of its stake in the food delivery giant for about $3.5 billion indicates a focus on core businesses and financial prudence. Facebook is currently the world’s largest online social network, with over 2 billion monthly active users.
Get a free, personalized financial plan from NerdWallet Planning. U.S. residents who open a new IBKR Pro account will receive a 0.25% rate reduction on margin loans. While you can’t directly invest in TikTok stock, there are a few roundabout ways to gain exposure to it. TikTok has not yet announced plans for an IPO, though many people expect it to go public in the next few years.
They’re one of the world’s most popular investing platforms with over 28.5 million users. Before diving into the stock market, it’s crucial to understand how investing works. Therefore, take your time and learn about stocks, investment strategies, and market trends. This knowledge will empower you What is american depositary receipt to make well-informed decisions and will allow you to move forward. Until ByteDance announces an IPO, investing in TikTok could be done indirectly by investing in one of ByteDance’s backers or via a pre-IPO investment platform. Explore our list of the best investment apps or learn how to become an accredited investor to get access to exclusive investment opportunities.
Many Chinese tech companies face similar challenges regarding regulation, and any small startup 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. SoftBank bought its stake in ByteDance in 2018 in the same funding round as python vs golang guide 2021 #exceedteaminc KKR’s initial investment. SoftBank owns a massive portfolio of both public and private equity. But ByteDance is just a small portion of the firm’s overall portfolio. It has more than $575 billion in assets under management, including $182 billion in private equity investments.
Our partners cannot pay us to guarantee favorable reviews of their products or services. Discover the range of markets you can trade on – and learn how they work – with IG Academy’s online course. The situation currently facing ByteDance and by extension TikTok remains highly fluid. It’s unknown whether TikTok (or its parent company ByteDance) will become a public company via an IPO. Despite being valued at $250 billion, ByteDance is also not publicly traded.
