TikTok has taken the social media world by storm, boasting over 1 billion monthly active users. To put that into context, only three other social platforms have more users: Facebook, YouTube, and Instagram. If you’ve ever wished you could have invested in those platforms when they were just starting out, you’re not alone. But here’s the catch: TikTok is not a public company, so buying TikTok stock directly is not possible. However, there are ways to gain exposure to this skyrocketing platform. In this article, we’ll explore how you can invest in TikTok as an accredited or retail investor, its ownership structure, and potential future opportunities. Let’s dive in!
How to Buy TikTok Stock as an Accredited Investor
If you’re an accredited investor, Equitybee provides access to a wide range of high-growth, VC-backed startups, including private companies like ByteDance, Reddit, and Stripe. By funding employee stock options, you can secure stakes in these private companies based on their past valuations. In return, you’ll receive a percentage of future proceeds from successful liquidity events. For specific offerings on ByteDance, TikTok’s parent company, check out EquityBee’s platform.
Can You Buy TikTok Stock as a Retail Investor? Is TikTok Publicly Traded?
TikTok is not listed on any stock exchange, meaning you cannot buy its shares directly. However, similar to how you can invest in Google by owning shares of Alphabet, or invest in Facebook and Instagram through their parent company, you can indirectly invest in TikTok. While ByteDance, TikTok’s parent company, is not publicly traded either, it is backed by notable firms such as Kohlberg Kravis Roberts, SoftBank Group, Sequoia Capital, General Atlantic, and Hillhouse Capital Group. Investing in these companies offers an indirect way to gain exposure to TikTok.
How to Invest in TikTok Stock: A Retail Investor’s Approach
As a retail investor, you cannot directly purchase shares of TikTok stock. However, you can invest in private equity firms that own TikTok. Two such firms are Kohlberg Kravis Roberts (NYSE: KKR) and SoftBank Group (OTCMKTS: SFTBY). Kohlberg Kravis Roberts is a global investment firm based in New York, while SoftBank Group is renowned for its active investment portfolio in technology companies. Before investing, it’s essential to conduct your due diligence on these firms and assess whether you are comfortable with their complete portfolio of investments.
How to Buy the TikTok IPO
While the future of a TikTok IPO remains uncertain, it’s wise to be prepared. If an IPO does happen, here’s what you need to do to buy TikTok shares:
- Create or log in to your brokerage account (consider eToro, a free and user-friendly option).
- Search for ByteDance or TikTok.
- Decide how many shares you want to buy.
- Place your order through your brokerage.
- Monitor your trade for updates and changes.
Remember, TikTok stock is not available for purchase until it goes public. Stay informed about the latest developments and be ready to make your move when the opportunity arises.
Other Social Media Stocks Worth Exploring
While TikTok might not be available for investment just yet, there are other intriguing opportunities in the social media industry:
- Meta Platforms (NASDAQ: META) – The parent company of Facebook and Instagram.
- Google (NASDAQ: GOOGL) – The owner of YouTube.
- Snapchat (NYSE: SNAP) – A popular multimedia messaging app.
- Twitter (NYSE: TWTR) – A leading social media platform.
Additionally, if you’re interested in investing in companies like SpaceX or getting involved in pre-IPO opportunities, expanding your investment portfolio further could be an exciting venture.
Investing in TikTok may not be straightforward, but with the right strategies and awareness of market developments, you can navigate the investment landscape effectively. Stay proactive and informed to seize potential opportunities in the future.