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If reports of $300 billion valuations are true, this is an undervalued company considering it's still growing at 54%.
by Leary 4y ago
If reports of $300 billion valuations are true, this is an undervalued company considering it's still growing at 54%.
- paxys 4y agoGrowth has to convert into profit at some point. Not sure how you can call $300B undervalued when Meta has a market cap of $375B right now and makes $40B a year.
- encoderer 4y agoYou have to apply the China factor. Shareholders can’t truly own the companies, can’t control the boards, can’t predict the future regulatory environment. It doesn’t make these companies worthless but it is a real markdown.
- throwaway4good 4y agoThis is a bunch of non-sense. ByteDance has a number of US investors and an international board. Their ideal exit strategy for TikTok is to have it spun off and IPOed on US exchanges.
- pb7 4y agoAt the end of the day, ByteDance can't do anything that clashes with the wishes of the CCP and that is a risk. If it were to attempt to IPO on US exchanges, it would be subject to even more scrutiny.
- dylan604 4y agoYes, what happens to US investment if the CCP steps and and takes over? Why would the CCP refund US investment? Investments come with risk and investing in Chinese companies have this extra bit of risk. The investors can cry about it, but they should have known it as a possible outcome for that investment.
- kersplody 4y agoBYTE is a Chinese company: it is co-managed by the CCP by definition and the CCP can and has been able to override the company leadership at anytime it sees fit. Investors knew about this risk from day one and knew that any invested capital would be under effective CCP management. In practice, the CCP has an interest in the growth of the company, however state priorities, like intelligence gathering have precedence. No one/company should have any expectation of privacy or security when doing business with any company operating in China, Hong Kong, or Macau.
- encoderer 4y agoChinese stocks do not IPO like that. They create a special shell company that is entitled to the profits of the company, and they ipo that shell.