[seven4]

True... though "588/user" is more digestable than "588/current user but likely accounting for future growth which is why there is a premium - though we can't be sure that userbase does continue to grow considering the cloud of uncertainty around this deal and that the user base is largely gen z/particularly young and it is not proven that they will be sticky"

They go on to acknowledge the growth profile and valuation multiples vs competitors based off projected profits ...which is probably the more useful way to look at it -

There have been reports of investors valuing TikTok around $50 billion in the takeover bid, this is approximately 50 times its projected revenue for 2020. Many publications have compared this to SnapChat’s market capitalization which sits around $33 billion at the moment (15 times its 2020 projected revenue). While Snapchat exists within the same social media ecosystem the comparison has to account for two factors.

1) TikTok vs Snapchat’s position in the growth cycle 2) TikTok vs Snapchat’s core proposition