TikTok Algorithm
Search documents
'Fast Money' traders talk about what the TikTok deal means for Big Tech
Youtube· 2025-09-25 21:55
Core Insights - ByteDance, the parent company of TikTok, has a valuation exceeding $300 billion, with a recent $14 billion deal for its US division, raising questions about its true worth given its significant growth over the past five years [1][10][11] Company Valuation - The valuation of TikTok is considered low compared to its revenue potential, as it reportedly generates four to five times the revenue of Snap, which has a $15 billion enterprise value [2][10] - There are speculations that bids for TikTok could exceed $40 billion, indicating strong interest from potential buyers [2][3] Algorithm Ownership and Value - The value of TikTok is heavily tied to its algorithm, with concerns about who will own it post-deal and how effective a leased version would be [4][7] - Oracle's involvement is seen as strategic, given its historical relationship with TikTok as a major customer for cloud services [5][6] Market Dynamics - The deal is perceived as favorable for Oracle, aligning with US regulatory dynamics, although it does not guarantee approval from Chinese authorities [6] - The differing use cases of TikTok and Snap are highlighted, with TikTok focusing on content consumption and Snap on messaging, suggesting distinct market positions [8][9] Advertising Revenue Potential - TikTok's revenue streams include advertising and e-commerce, positioning it as a preferred platform for creators, which enhances its market value [12]
