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TikTok Sets Sights on $20 Billion E-Commerce Empire, Aims to Quadruple Global Sales

ByteDance Ltd.’s social media company, TikTok, is embarking on an audacious mission to establish itself as a dominant player in the e-commerce industry with the lofty goal of quadrupling its global sales.

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ByteDance Ltd.’s social media company, TikTok, is embarking on an audacious mission to establish itself as a dominant player in the e-commerce industry with the lofty goal of quadrupling its global sales.

TikTok aims to achieve a staggering $20 billion in merchandise sales this year, according to people familiar with the matter.

“That would be a speedy increase from last year’s $4.4 billion in gross merchandise value, which represents the total worth of goods sold through its TikTok Shop offering,” said the anonymous sources.

TikTok is betting on rapid growth in Southeast Asia, particularly in markets like Indonesia, where influencers showcase products through live-streamed videos, ranging from denim jeans to lipstick.

TikTok is also working to expand its sales in the United States and Europe, albeit on a smaller scale compared to its overall target. The company aims to grab a bigger share of the $17 trillion online commerce market as its main revenue driver, especially after its advertising business slows down due to the ongoing economic downturn.

Despite threats of a potential ban by American politicians over national security concerns, TikTok sees potential in forming profitable ties with US merchants and brands.

“The Chinese-owned company is intent on exporting its commerce model to the US and its 150 million users there,” the sources added. TikTok has proposed measures to address national security concerns, such as data isolation for American users and technology reviews by partners like Oracle Corp.

However, challenges persist, with the state of Montana imposing a prohibition on the app’s download starting in 2024, and lawmakers proposing similar bills for a nationwide ban.

When approached for comment on the company’s financials, a TikTok spokesperson declined to provide any statements.

ByteDance, founded over a decade ago by Zhang Yiming and Liang Rubo, has become a prominent internet leader valued at over $200 billion. Its success can be attributed to the virality of TikTok and Douyin, its Chinese counterpart. While live shopping has yet to gain significant traction in the US and Europe, TikTok draws inspiration from Douyin’s success in China.

TikTok Shop allows users to buy items while scrolling through an endless feed of short videos and livestreams. By blending entertainment with impulse buying, TikTok aims to position itself as a viable alternative to giants like Amazon.com Inc. and Sea Ltd.’s Shopee.

Douyin’s success in capturing a significant portion of Chinese consumer spending from Alibaba Group Holding Ltd. and JD.com Inc. serves as a testament to the potential of TikTok’s commerce model.

“The rapid growth of TikTok Shop poses a direct threat to Southeast Asia’s incumbent e-commerce leaders,” said Simon Torring, co-founder of e-commerce research firm Cube Asia. “It is, however, still too early to declare TikTok Shop’s victory. It has not yet demonstrated the ability to gain significant growth momentum outside the beauty and fashion categories, and a lot of the current growth is heavily subsidized by TikTok through vouchers and aggressive marketing spending.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Meta’s Revenue Woes Shake Tech Industry Confidence

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The tech industry faced a wave of uncertainty as Meta Platforms Inc., formerly known as Facebook, delivered a disappointing earnings report that sent shockwaves through the market and dented investor confidence.

Meta’s forecast of weaker-than-expected sales for the current quarter, coupled with plans for higher capital expenditures, rattled investors who were eagerly anticipating robust results.

Shares of Meta plummeted by as much as 19% in after-hours trading to trigger a cascade effect across the tech sector.

The tech-heavy Nasdaq 100 Index experienced a decline of up to 1%, reflecting broader concerns about the health of the industry.

Analysts and investors alike expressed dismay at Meta’s inability to meet revenue expectations, citing uncertainties surrounding the company’s adoption and monetization of artificial intelligence (AI) technologies.

Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors, highlighted the disappointment on the revenue front, overshadowing any optimism about AI adoption.

Questions lingered regarding the efficacy of AI investments and their potential benefits to users, leading to increased skepticism among stakeholders.

The repercussions of Meta’s earnings miss extended beyond its own stock, impacting other tech giants slated to report earnings in the coming days.

Alphabet Inc., Amazon.com Inc., and social media companies like Snap Inc. and Pinterest Inc. all witnessed notable declines, signaling a broader sentiment shift within the industry.

The fallout from Meta’s revenue woes reverberated across the tech landscape, affecting chipmakers, server manufacturers, and software firms. Nvidia Corp., Micron Technology Inc., and International Business Machines Corp. were among the companies affected, as investor concerns over AI investment and revenue growth cast a shadow over the sector’s outlook.

As the tech industry grapples with Meta’s disappointing results, stakeholders are left to ponder the implications for future investments and strategic decisions.

The episode serves as a stark reminder of the inherent volatility and uncertainty within the tech sector, underscoring the importance of diligent risk management and strategic foresight in navigating turbulent markets.

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TikTok Vows Legal Battle Amid Threat of US Ban

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As the specter of a US ban looms large over TikTok, the popular social media platform has declared its intention to wage a legal battle against potential legislation that could force its Chinese-owned parent company, ByteDance Ltd., to divest its ownership stake in the app.

In what amounts to a fight for its very existence in one of its most crucial markets, TikTok is gearing up for a high-stakes showdown in the courts.

The alarm bells were sounded within TikTok’s ranks as Michael Beckerman, the company’s head of public policy for the Americas, issued a rallying cry to its US staff.

In a memo obtained by Bloomberg News, Beckerman characterized the proposed legislation as an “unprecedented deal” brokered between Republican Speaker and President Biden, signaling TikTok’s readiness to challenge it legally once signed into law.

“This is an unprecedented deal worked out between the Republican Speaker and President Biden,” Beckerman stated in the memo. “At the stage that the bill is signed, we will move to the courts for a legal challenge.”

The urgency of TikTok’s response stems from recent developments in the US Congress, where lawmakers have fast-tracked legislation mandating ByteDance’s divestment from TikTok.

The bill, intricately linked to a vital aid package for Ukraine and Israel, has garnered significant bipartisan support and is expected to swiftly pass through the Senate before landing on President Biden’s desk.

Beckerman minced no words in his critique of the proposed legislation, labeling it a “clear violation” of TikTok users’ First Amendment rights and warning of “devastating consequences” for the millions of small businesses that rely on the platform for their livelihoods.

TikTok’s defiant stance reflects the gravity of the situation facing the tech giant, which has spent years grappling with concerns from US officials regarding potential national security risks associated with its Chinese ownership.

Despite extensive lobbying efforts led by TikTok CEO Shou Chew to allay these fears, the company now finds itself at a critical juncture, where legal action appears to be its last line of defense.

ByteDance, TikTok’s Beijing-based parent company, has also signaled its intent to challenge any US ban in court, signaling a united front in the face of mounting pressure.

However, navigating the legal landscape will not be without its challenges, as ByteDance must contend with both US legislative measures and potential obstacles posed by the Chinese government, which has reiterated its opposition to a forced sale of TikTok.

As TikTok prepares to embark on what promises to be a protracted legal battle, the outcome remains uncertain.

For the millions of users and businesses that call TikTok home, the stakes have never been higher, as the platform fights to preserve its presence in the fiercely competitive landscape of social media.

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Trump Media & Tech Group Plummets, Wiping Out $2.8 Billion in Value

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Trump Media & Technology Group Corp., the social media predominantly owned by former U.S. President Donald Trump, has lost $2.8 billion in market value in the last few days.

The tumultuous downturn comes as a wave of retail traders who once fervently boosted the stock have begun to offload their holdings.

The company, which encompasses the Truth Social platform, has seen its stock plummet by 36% since its closing high on March 26.

This nosedive not only erased the gains achieved in the aftermath of its merger with Digital World Acquisition Corp., but it also pushed the stock below its pre-merger trading levels.

Initially, Trump Media enjoyed a meteoric rise in its early days as a publicly traded entity following the merger with DWAC, the blank-check company facilitating the deal.

However, the allure of the stock among individual investors, who saw it as a means to express support for the former president’s potential 2024 reelection bid, has waned significantly.

As the stock continues its downward spiral, the once-projected paper windfall for Donald Trump himself has also dwindled.

Trump’s anticipated gains from the venture have plummeted by approximately $1.6 billion, leaving him with an estimated $2.9 billion in paper wealth.

However, realization of this wealth remains contingent upon a six-month lock-up agreement, delaying Trump’s ability to sell shares.

The timing of Trump Media’s downfall coincides with a flurry of legal troubles facing the former president. With just a week until the commencement of his first criminal trial in Manhattan, Trump faces charges related to falsifying business records in connection with hush money payments to a pornographic actress prior to the 2016 election.

Also, Trump is slated to undergo deposition in a civil lawsuit filed against him and Trump Media by two co-founders alleging share dilution prior to the merger.

Despite the substantial loss in value, Trump Media retains a market capitalization of approximately $5 billion, underscoring the paradoxical valuation dynamics in the current market environment.

The company’s meager revenue of $4.1 million in the preceding year contrasts sharply with its lofty market capitalization, raising concerns about the sustainability of its valuation.

The dramatic downturn of Trump Media & Technology Group mirrors the volatile trajectory of past meme stocks like GameStop Corp. and underscores the inherent risks associated with companies emerging from SPAC mergers.

As the company grapples with its dwindling valuation and mounting legal challenges, the future of Truth Social and its associated ventures remains uncertain in the ever-shifting landscape of the digital realm.

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