ByteDance’s Blowout Profit, Kalshi & Events Betting, and Dude Perfect’s Big Deal | Prof G Markets
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Financial Surge
ByteDance has experienced a remarkable financial surge, growing its profit by 60% year over year in 2023, reaching $40 billion in EBITDA. The company's revenue also increased by 50%, totaling $120 billion, surpassing Tencent in both profit and revenue for the first time. argues that ByteDance is currently the most undervalued company in the world, with an enterprise value to EBITDA ratio of six times, compared to Tencent's twelve times and Meta's twenty-two times.
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.
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Scott believes that ByteDance's value will skyrocket once the geopolitical tensions between the US and China are resolved. 1
Valuation
Despite restrictions on employee stock sales, ByteDance's valuation on the secondary market is around $250 billion. Scott sees this as an incredible buying opportunity, especially given the company's rapid growth and low valuation multiples compared to other tech giants. He emphasizes the importance of economic security and advises young people to prioritize financial stability.
My biggest wins have been running into the fire, buying companies with big addressable markets that for whatever reason, bad cap structure or some sort of cyclical trend, or in this case a geopolitical overhang have really impacted the stock.
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Scott and both agree that ByteDance is a strong investment, despite the current market uncertainties. 2
