I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
Facebook was able to leverage their popularity with college students into a larger platform that had mass appeal with all age groups. I don't see why TikTok can't add features and get the same results.
YikYak is another possible path for it to go.
Feel free to invest wherever you want, but personally I don't have the stomach for it.
I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
i see four scenarios:
1. insanity
2. lies about numbers
3. massive invasive data siphoning and thats actually the basis for the valuation
4. tiktok now has a license to vast raw video and personal data that users granted them the right to use and resell in perpetuity. They obviously don't just keep edited but also raw data, videos never published, maybe even entire camera rolls. So much data held by a company sheltered behind the Chinese state's protection from legal repercussions.
I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
> has a track record of jumping from platform to platform do they really though? It honestly seems like particular brands are very sticky with internet demographics, not just young people. IIRC there even is more brand loyalty among ecommerce than there is among physical brick and mortar stores. You can look at something like Whatsapp as well. There have been lots of privacy concerns after the acquisition by Facebook…
In my experience, the claim that the younger generation hops around is fair. I'm 26. Between the ages of 15 and now, my primary social media platform has hopped between Myspace, Facebook, Reddit, 4chan, YouTube, some diary site, PSN(PlayStation Network), Hacker News, and probably others. I've dipped my toes into countless other ones. I've kind of stopped hopping around as much, but other people my age still hop between newer ones like Instagram, tiktok, and others.
I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
This was my first reaction also but making a quick google search it seems that TikTok has 500 million users. That's a lot. Doing a pretty simple calculation of a dollar per user per day, you arrive quickly at 180 billion dollars of advertising monetization a year. It is really just another scale. But yeah, maybe i am way off and the valuation is still absurd.
Where did you get that “simple calculation” from? If Average user is worth to TikTok a dollar per day that means that ad buyers are willing to give it to TikTok from their advertising and marketing budget. Which means that the average user should spend at least few grands each year on advertised products and services, which does not seem likely.
Also, this is not how valuations are estimated. 180 billion _per year_ is a huge amount (for comparison Apple revenue for 2019 is 260B). One applies a revenue multiple that depends on the stage of the company and industry but for early booming social media site is in the range of 20-40. So the estimate of 105-110 probably comes from the range of 3-5 B yearly revenue estimate
> It’s the first salvo of ByteDance’s goal to reach 100,000 staff globally by the end of the year, outlined by Chief Executive Officer Zhang Yiming in an internal memo last month. Can someone explain to me the rationale behind such an aggressive employee headcount? Do they have larger ambitions or are they trying to justify the valuation? It just strikes me at an incredibly large number of employees for the service.
ByteDance has a huge suite of apps already (in China). Several of them could independently be unicorns without international expansion. I don't see why they wouldn't want to both grow that number and expand what they already have to other markets
I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
ByteDance isn't just TikTok, which is what the headline doesn't include. They also own Toutiao (Chinese news/content platform, top 100 website in China), Helo (Indian social media, the Google Play app alone has 2.2M reviews), Lark (https://www.larksuite.com/, an enterprise collaboration platform aimed at the Japanese market).
I really can't fathom how this is possible. The largely young demographic (which I'm guessing warrants this valuation) has a track record of jumping from platform to platform, whichever is trendy for a given year. With that in mind, how are investors seriously willing to get behind this company in such a big way?
This was my first reaction also but making a quick google search it seems that TikTok has 500 million users. That's a lot. Doing a pretty simple calculation of a dollar per user per day, you arrive quickly at 180 billion dollars of advertising monetization a year. It is really just another scale. But yeah, maybe i am way off and the valuation is still absurd.
180b/0.5 = each user (including inactive ones) worth 1$/day?