The trades are private transactions and may not fully reflect broader investor expectations. Stock in the secondary market is usually valued at a discount to primary shares since it’s less liquid and there are fewer financial details on company performance available to investors.
“The trading of ByteDance
is reflective of the global wave of consumers who agree that ByteDance
can displace Facebook as the leading social network,” said Andrea Walne, a partner at Manhattan Venture Partners who follows the secondary markets.
In the past decade, Bytedance is surpassed only by Alibaba Group Holding and Ant Financial Services Group as companies
that have traded at a higher premium in the secondary market, she added.
ByteDance has grown into a potent online force propelled in part by a TikTok
short video platform that’s taken US teenagers by storm.
Investors are keen to grab a slice of a company that draws some 1.5 billion monthly active users to a family of apps that includes Douyin, TikTok’s Chinese twin, as well as news
service Toutiao. That’s despite American lawmakers raising privacy and censorship concerns about its operation.
This week, it poached Walt Disney Co. streaming czar Kevin Mayer to become chief executive officer of TikTok.