0Tik Tok is a service for the creation of short videos. ByteDance, which is the company behind the platform, launched this social network in 2016. Being a leading video platform for short videos in its native country, the mobile app conquered markets in other countries as well. Now it’s popular all over the world. Despite that, the application is most popular in China where it is called Douyin. It is used frequently during the day by its numerous users sharing content with their friends. The platform’s revenue surpassed forecasts for the first half of the year as it reached 7 billion USD. According to estimations, the company have left the brand Uber behind, which was the most expensive startup globally. This is one of the reasons why TikTok stock has become a reliable store of value.
The main content on the platform includes:
- Funny memes;
- Music;
- Creation of commercial videos, etc.
The mobile app enables recording and uploading of short videos with music or other sound added to them. After it acquired immense popularity in 2018, the application even managed to bypass such popular services as:
- YouTube;
- Instagram;
- Facebook.
It should be said that China has a lot of mobile apps with such focus. The secret to the success of these apps is their extensive functionality. They are flexible and try to modify the boring features incredibly fast adapting to modern trends. All these things are considered when TikTok social media stock price is determined.
The background of the platform
Chinese Internet company ByteDance, the owner of the platform, started negotiating with potential investors to raise 2 billion USD in funding when it prepared for the IPO of its subsidiary companies. The preparation for the IPO takes place after the company decides to go public. Rumors about IPO have been going around for a year already. In March 2021, ByteDance hired a CFO. Shou Zi Chew, a former Xiaomi executive, was invited to hold the position and prepare the platform for a public offering. It means that customers will be able to participate after the listing of TikTok stock on a public exchange.
ByteDance's management has officially confirmed the fact about their intentions to hold an IPO. They also stated about their plans to select American exchange for it. The Chinese corporation said about the closure of investment round in anticipation of going public. When it is completed, ByteDance will become the main company that owns TikTok stock. It’ll be the owner of 80% of tiktok market share regardless of tiktok stock price today per share.
Despite the official confirmation of IPO, we don’t know the details yet, we want to make sure not to skip the moment and get ready to purchase TikTok stock Price of this promising platform will definitely go up with time bring profit to the holders of TikTok stock.
Though ByteDance fell out of favor with the American government, the platform that the company owns are very popular in China. In summer 2020, the userbase of the Chinese platform surpassed 600 million daily active users. Just compare it with the number observed in January of the same year. It was 400 million users then.
Problems of the app in the USA
As a reminder, the app could be blocked in the United States as a result of decision imposed by a US court in autumn. The court banned to download the app in the country thus giving more time to prepare for a deal with Oracle and Walmart. As it was previously reported by mass media, these companies may invest in tiktok shares to a limited extent. It was permitted to purchase 12.5% of shares for Oracle, which acquired the stock of specially created enterprise TikTokGlobal. As far as Walmart is concerned it could purchase 7.5% of the shares.
The TikTokGlobal Council will include the founder of ByteDance Ch. Iming, the head of the Walmart retail chain and the head of ByteDance at present. It is also worth noting that the tax payment of 5 billion USD to US treasury announced by D. Trump doesn’t affect the deal concluded between the companies mentioned above. The amount of tax payment was calculated on the basis of potential future income and other similar payments the company will have to make.
The Americal president made the decision concerning alienation of the part of the videoservices business. In accordance with the agreements, US companies receive a 20% stake after they invest in it. The remaining securities are held by ByteDance. The new legal entity is valued at USD 60 billion. Despite these facts, there is no data on tiktok parent company stock. ByteDance has not yet chosen a definite place for the IPO.
The sources assert the brand may have begun preparing several of its largest assets for listing on the exchange apart from Douyin. It also concerns a popular news application Toutiao. The probability of TikTokGlobal shares listing on NASDAQ is very high. Tiktok stock price today is not known yet.
The enterprise is negotiating with a range of investing companies such as the Sequoia Capital venture capital fund. The funding will raise the valuation of the parent company to 180B USD. According to information published in mass media, even when the figure reached 140B USD, it became one of the most expensive private companies. The terms of the round are subjected to change as the deal is on the negotiation stage at the time of writing.
What affects TikTok share price
To understand the value of Tiktok company stock, we should understand that Bytedance is the most expensive startup on the planet. But this is not enough. The lack of possibility to sell TikTok stock matters more and affect its price.
For example, the negative episode occurred in February 2018, when the website was caught in the illegal collection of data about children. The developers have been fined for breaking the law in the United States. In June 2020, India introduced a ban on the use of the service, because this software violates the rights on the territorial integrity of the country. Therefore, due to violation of rights and laws in some countries, the corporation can not start trading TikTok stock, which will be available to companies and individuals. It tells upon the value of TikTok stock.
How to buy TikTok stock?
The corporation's revenue was 8 billion USD in 2019. Now the cost of the facility goes beyond the cost that was set earlier, and it is estimated at 78 billion dollars.
According to experts, in April 2020, the website earned more in a year than in the previous one. The amount includes revenues only from purchases within the mobile app itself, the cost for advertising through third-party applications is not included to 78 billion USD.
It’s important to look at the movement of the market and the current trend to evaluate our tiktok stock price per share. It’s necessary not to lose buying the asset on top.
BDNCE is tiktok stock price symbol. However, it’s better to wait for IPO to buy shares, though pre-IPO sales usually have a better stock price TikTok is not an exclusion. If you prioritize a smooth procedure, don’t trade it until the IPO.
The forecast for TikTok stock
The forecast for the future of TikTok stock is rather cautious. Many services on the market feel pressure as a result of the app’s popularity. They are afraid because the platform has exceeded expectations and evolved rapidly, while others cannot overtake the platform and are falling in popularity. Customers prefer to buy stock in TikTok instead of financing local social media. Experts believe that this desperate struggle with the platform won’t lead to anything good. Numerous countries develop similar services that are analogs of the Chinese app. If the mobile service continues to absorb young people, then other apps cannot capture the audience thus losing many users.
It’s easy to track the situation around the service as it is immediately reflected on Tiktok stock share price. It is not known what to expect in the future as there are many unclear details about stock price of tiktok. Experts and the enterprise itself cannot talk about the topic in a negative context, because the takeoff of the facility was lightning fast. Many users make money on the platform through commercials, while the platform itself boasts of other factors, for example, large corporations that cooperate with the site.
