Tik Tok IPO, the Fastest Growing Social Media Platform
As with many of the other social media companies that have listed on the New York Stock Exchange such as Facebook and Snapchat, it’s important to consider the possibility of a Tik Tok IPO. It’s important to also note that Tik Tok is currently owned by a Chinese company so it’s unlikely that it would list on the New York Stock Exchange, however that does not mean that you would not be able to purchase stock in it. In this article we’ll talk about what Tik Tok is, whether or not it can compete with larger social media stocks, and whether it’s a buy or not.
What is Tik Tok?
Tik Tok is a mobile application on most platforms that allows users to create videos from tutorials to sketch comedy and allow other users to like certain posts and follow certain creators. Tik Tok emerged after the death of Vine which was an extremely popular app that had a similar experience. Tik Tok has found a very large audience in teenagers and young adults from 16 to 24 and has grown to be one of the largest social media so far. It is certainly the fastest growing as compared to Facebook, Snapchat, and Instagram.
Tik Tok Could Compete with Larger Social Media
If a Tik Tok IPO were in the near future Tik Tok would need to compete with social media stocks such as Facebook and Snapchat which many see as difficult to do given Facebook’s history and Snapchat’s large user base. However, Snapchat and Facebook have both seen a large decline in use among younger people. It has been reported that many teens and young adults are abandoning Facebook altogether. Regardless of Facebook’s 2 1/2 billion person user base its growth has slowed significantly. One of Facebook’s saving graces is the fact that it currently owns Instagram which has continued to grow in popularity since Facebook purchased it. Snapchat, much like Facebook, has seen a decline in use in recent years and this has shown in its stock which has stagnated. This shows an opening for another social media application to sweep in and steal both these companies user bases.
How would it Compare to Facebook and Snapchat?
Tik Tok has already shown that it’s able to hold its own against larger social media such as Snapchat, Facebook, and Instagram. The real question is not whether Tik Tok can compete with these social media companies, but whether or not it can keep itself out of trouble by not getting wrapped up in scandals Like Facebook. Since Tik Tok is a Chinese company and China monitors its people very closely, it has been speculated that Tik Tok may be monitoring users more than they may like. It’s important for Tik Tok to avoid such scandals when considering a public listing. Since Tik Tok is still incredibly new, it’s important to understand that its user base can fluctuate highly because of scandals such as the Cambridge Analytica one Facebook had.
Should You Invest in Tik Tok?
If a Tik Tok IPO is in the near future, given its quickly growing user base of young people, one of the primary target audiences of social media, and the fact that it can compete with the larger social media out there, it is this author’s opinion that if Tik Tok lists it will be a buy. Tik Tok shows no signs whatsoever of slowing down, and continuously listens to its user base, which both Facebook and Snapchat have been accused of not doing, which could signal an even larger growth in the near future.
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