Prof G Markets: ByteDance’s Blowout Profit, Kalshi & Events Betting, and Dude Perfect’s Big Deal

Financial Growth

ByteDance has achieved remarkable financial growth, with a 60% increase in profit year-over-year, reaching $40 billion in EBITDA. The company's revenue also surged by 50% to $120 billion, surpassing its rival Tencent in both profit and revenue for the first time 1. Ed Mylett highlights that these figures, although internal and unaudited, position ByteDance close to Meta, which reported nearly $135 billion in revenue last year. This growth comes despite the looming threat of a potential TikTok ban or sale in the US, showcasing ByteDance's resilience in a challenging market environment 1.

ByteDance is killing it in the face of its greatest existential threat thus far, which is a potential TikTok ban or sale in the US.

--- Ed Mylett

   

Valuation Insights

The valuation of ByteDance is a hot topic, with Scott Galloway arguing that it might be the most undervalued company globally. Despite geopolitical tensions, ByteDance's enterprise value to EBITDA ratio is six times, compared to Tencent's twelve times and Meta's twenty-two times 2. Scott believes that the company's potential divestment in the US could significantly increase its market value. He emphasizes the importance of economic security over political concerns, suggesting that ByteDance's current valuation presents a unique investment opportunity 3.

My advice to people is like, look, to young people especially, I get it. If you want to take a stand, good for you. But your first obligation is to develop economic security for you and your family in a capitalist society.

--- Scott Galloway