Security: Possible security concerns raised by the U.S.High Risk/High Reward: 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.Private Company: TikTok isn’t subject to the same disclosures as a public company, meaning you won’t have access to quarterly earnings reports and other financial disclosures.Reputation: Unlike a company like Disney or Walmart, TikTok is far from a “ blue chip stock.”.If an IPO comes to pass, you’d want to determine if investing in TikTok would even make sense for you as an individual investor. However, there could be good news later if ByteDance goes public. Since TikTok remains private, you’d have to find a way to convince management to accept your investment, which isn’t likely for most. Unlike so many of its “unicorn” brethren that have commanded multimillion-dollar valuations and then had a splashy IPO, you won’t find TikTok traded on say, the New York Stock Exchange. and China.Ĭonsider this before investing: TikTok is not a publicly traded company. However, the bottom line is that user penetration and in-app revenue are both showing strong, consistent gains, pointing the way to a bright near-term future for TikTok - as long as it’s not sidelined by regulations in the U.S. TikTok still has a long way to go before it competes with the $2 trillion valuation of companies like Apple. operations of TikTok, but that deal reportedly has been tabled indefinitely while the Biden administration reviews security threats from Chinese tech companies, according to CNBC.īyteDance’s stock buyback suggests that its anticipated initial public offering has been tabled. A deal was struck for Oracle and Walmart to take over the U.S. government’s security concerns regarding the app. One roadblock for TikTok has been the U.S. In the U.S., TikTok is the sixth-most popular social app, edging out Facebook Messenger, Snapchat and Twitter but coming in behind Facebook and Instagram, according to Statista. The app has been downloaded more than three billion times and had 1.2 billion monthly active users users as of the fourth quarter of 2021, Business of Apps reported. The company was perfectly positioned to benefit from the global quarantine created by the COVID-19 pandemic.
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