How To Buy TikTok Stock In 2024? [Is TikTok Publicly Traded?]

Updated On: 07/14/2023
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Keeping up with trending investments can be as fascinating and fast paced as scrolling through the 'For You' section of your favorite app, TikTok.

As we ride the wave of this digital age, it's exciting to see how companies we interact with every day on our screens also present an opportunity to grow our wealth.

The potent mix of the breathtaking ascend of social media platforms and potential monetary benefits has got many intrigued about how to buy TikTok stock.

Yet, buying into the vibrantly pulsing heart of meme culture and viral dances isn't quite as straightforward as you might think.

Deciphering the path to owning a piece of TikTok can be more confusing than learning 'Renegade' choreography on your first attempt.

Across this article, we'll unpack all you need to know about investing in TikTok; from understanding its parent company to exploring alternate investment options with similar companies, we've got it covered.

The Basics Of Stock Trading

The Basics Of Stock Trading

If you're new to the world of investing, some terms might seem like a foreign language. But fret not; we'll decode the basics right here.

Stocks, at their simplest, represent ownership in a company. When you buy shares or stocks, you essentially buy a piece of that company, thus becoming a part owner.

The process of buying these shares takes place in markets known as stock exchanges (like the New York Stock Exchange or NASDAQ).

Now let's talk about IPOs. When a private company decides to let public investors take part in its growth story by selling its shares to them for the first time, it's called an Initial Public Offering (IPO). This is typically how most companies transition from being private to public.

Here isthe differences between Public and Private Companies:

Public CompanyPrivate Company
Shares can be bought/sold by the general publicShares are held by a small group of people
Must disclose financial information regularlyNot obligated to share financial data

Remember though; investing always comes with risks. So while navigating through investments and understanding how to buy TikTok stock, it’s vital always to conduct thorough research and consider your financial advisors' advice.

TikTok: A Brief Overview

TikTok: A Brief Overview

When dissecting the question "how to buy TikTok stock," it's important first to know 'what TikTok is'.

Born from a merger between lip syncing app Musical.ly and short video sharing platform Douyin, in just a few years, TikTok has skyrocketed to become one of the world’s most popular social media platforms.

TikTok’s appeal lies in its simplicity all you need are a smartphone and a sprinkle of creativity. This potent recipe has made TikTok an exceptional platform, capable of turning ordinary users into overnight viral sensations.

From dance challenges to crafts, cooking tips, or even stock advice you can find videos on just about anything.

Incredibly, in its short life span since late 2016, the platform has reached over 2 billion downloads.

In the United States alone, the platform boasts over 100 million monthly active users. Despite being temporarily banned in some countries due to security concerns, these staggering numbers point towards TikTok’s continued global expansion.

Is Buying TikTok Stock Possible?

Is Buying TikTok Stock Possible?

The burgeoning interest in how to buy TikTok stock is entirely understandable. Given the platform's monumental success, it makes financial sense to wonder if you can partake in its growth through stock investments.

The situation isn't as straightforward as buying a stock from an openly traded company. Here's why.

TikTok is not a publicly-traded company; this means its stocks are unavailable for purchase on any public exchange like NYSE or NASDAQ. Simply put, there are no "TikTok stocks" per se that you can buy off of an exchange.

All shares are currently private and only available to privileged, accredited investors.

But hold on a minute! There's more to this story after all, every prominent character in our tale usually has an influential figure behind the scenes. For TikTok, it's ByteDance.

ByteDance is the Beijing based parent company of TikTok, originally founded by Zhang Yiming in 2012. They are a global player in AI and content platforms with holdings not just limited to our starlet TikTok but also other high flying applications like Toutiao and Xigua Video.

Known as one of the most valuable startups globally, ByteDance is currently privately held and doesn't freely trade its shares on any public exchanges either.

As with many successful startups though, there has been speculation whether ByteDance will go public given their increased global visibility and monetary success.

How To Buy TikTok Stock?

How To Buy TikTok Stock?

Although you can’t directly purchase stocks, there's a roundabout way for eager investors to proverbially own TikTok stock.

This approach centers on investing in companies that have injected capital into TikTok's parent company, ByteDance.

Here, we will explore two corporations namely KKR & Co Inc. (KKR) and SoftBank Group Corp (SFTBY).

1. Investing in KKR:

Investing in KKR:

Kohlberg Kravis Roberts & Co or KKR is an American global investment firm that manages multiple asset classes, including private equity, energy, and infrastructure.

In 2018, KKR was part of a consortium that poured funds into ByteDance's $3 billion financing round, which involved both new investors and existing shareholders. Therefore by investing in KKR shares listed on the NYSE under ticker 'KKR', you gain indirect exposure to ByteDance.

Steps to invest in KKR:

  1. Open an online brokerage account: Reputable platforms include TD Ameritrade, eTrade and Robinhood.
  2. Deposit funds: This could be done via bank transfers or wire transfers.
  3. Search for ‘KKR’: Keying this in your broker’s search option will take you directly to the KKR stock.
  4. Purchase shares: Decide the number of shares you want to buy based on the current stock price and your investment budget.

2. Investing in Softbank (SFTBY)

Investing in Softbank (SFTBY)

Next up is SoftBank Group Corp, often hailed as Japan's investment powerhouse. Though primarily operating as a telecom company, it’s better renowned globally for its voluptuous venture capital pursuits facilitated through their Vision Fund.

SoftBank has spread its investments across myriad sectors with one such funding pouring into ByteDance’s coffer during their growth stage funding rounds.

Steps to buy SFTBY stock mirror those explained previously for KKR. Simply replace 'KKR' with ‘SFTBY’ when searching at your chosen broker platform.

Investing in Social Media Platforms

Investing in Social Media Platforms

While figuring out how to buy TikTok stock might lead you down a complex rabbit hole right now, don't get disheartened.

There's an entire smorgasbord of publicly traded social media platforms ripe for investment consideration, each with their unique perks and pitfalls.

The top players in the game are household names like Facebook (Including Instagram and WhatsApp), Twitter, Pinterest, and Snapchat among others.

  • Facebook (FB): With almost 2.9 billion monthly active users, Facebook is the gargantuan ruler of the social media kingdom. Considering this massive audience, ad revenues have continued to burgeon contributing significantly to its relatively stable stock performance.
  • Twitter (TWTR): A crowd favorite for real time discussions on trending topics, Twitter is another strong player. It has shown promising growth though has been through periods of stock volatility.
  • Pinterest (PINS): Pinterest's appeal lies in its unique positioning as a visual discovery engine. With solid revenue growth and an expanding user base, Pinterest has steadily caught investors' attention.
  • Snapchat (SNAP): Snapchat stands out with its popular disappearing message feature and AR filters. A hit among the younger crowd, the app shows potential though its financials have swayed both sides of the profit line.

Each investment comes with inherent pros and cons dependent upon factors like company leadership, business models, user sentiment & global events influencing ad revenues upon which these platforms heavily rely on.

Will TikTok go Public?

Will TikTok go Public?

If you've been waiting for a definitive answer, this section is pivotal in our dialogue of how to buy TikTok stocks.

The billion-dollar question is whether TikTok (or rather ByteDance) will go public in the foreseeable future. Here's what we know and what could transpired if it does.

  • Potential IPO release: There have been consistent whispers in the financial realm that ByteDance has been contemplating an IPO. While these rumors are yet to be solidified or confirmed by the company, should this be true, it heightens anticipation for eager investors worldwide.
  • Implications of going Public: If ByteDance chooses an IPO route and becomes publicly traded, they'd necessarily have to release more information about their finances and operations – thereby providing clearer insight into their business model and future prospects.
  • Market Valuation Boost: A successful IPO could catapult ByteDance valuations even further; positioning it as one of the most valuable tech companies worldwide. This could create a rippling effect benefitting shareholders who got onboard early.
  • Future Investment Opportunities: For retail investors looking to own a slice of the social media pie, an IPO would mark a breakthrough. You’ll finally get direct access to invest in one of the fastest growing social media platforms at least indirectly by owning ByteDance shares responsible for breeding & nurturing TikTok.

FAQs Regarding How To Buy TikTok Stock

Is TikTok going to IPO?

As of now, TikTok's parent company, ByteDance, has not confirmed plans for an IPO.

Who owns TikTok?

Chinese start-up ByteDance owns TikTok.

Is TikTok stock available?

Currently, TikTok stock is unavailable as it's not a standalone publicly traded entity.

How can I invest in TikTok?

Investments in TikTok aren't possible directly; potential routes could be via investing in related industries or if ByteDance goes public.

Is Bytedance a publicly-traded company?

No, ByteDance is a private company and is not currently publicly traded.

Conclusion

Our exploration through the dynamic world of social media investing brings us to an interesting crossroads.

On one hand, we've unmasked the reality that as of now, there's no direct method for individual investors wondering how to buy TikTok stock.

But we've also highlighted that possibilities do exist albeit indirectly through investments routed via companies like KKR and SoftBank who hold stakes in ByteDance.

However, the real gamechanger lies dormant in the rumors of a potential ByteDance IPO.

If these speculations materialize into concrete actions we'll witness a seismic shift in investment opportunities with ByteDance’s rocketing influence painting a compelling picture for all money holders.

But until that day, it's important for investors to consider alternative options within the diverse landscape of social media. Navigate wisely, ensuring you maintain a well diversified portfolio irrespective of the specific investments that catch your fancy.

Michael Restiano

I support product content strategy for Salt Money. Additionally, I’m helping develop content strategy and processes to deliver quality work for our readers.

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