Updated Valuation from Needham
In their recent market analysis, financial experts from Needham provided an updated valuation of key players in the short-form video content industry: TikTok, Meta Reels, and YouTube Shorts. According to their estimates, the current market value of TikTok is approximately $218 billion, Meta’s Reels is nearly $203 billion, and Alphabet’s Shorts is around $206 billion.
About Needham
Needham is a well-known investment firm specializing in financial market analysis and forecasting technological trends. They conduct in-depth research and provide analytical reports that help investors and companies evaluate promising directions and make informed decisions. Their research on the short-form video content market offers valuable insights into current trends and future prospects for leading platforms.
Future Forecasts
Experts predict that the future of these three platforms will be influenced by the upcoming U.S. presidential election. In 2023, advertising investments in American short-form video platforms grew by 10.4%, according to data from eMarketer. TikTok generated $15 billion, Instagram Reels $10 billion, and YouTube Shorts $8.5 billion.
Needham expects that revenues for each of these platforms will grow by 20% in 2024. If this forecast holds true, TikTok’s revenue will reach $18 billion, Reels $12 billion, and YouTube Shorts $10.2 billion.
Valuation by Multiplier
Using the Netflix enterprise value-to-revenue multiplier for 2024 (7.7 times), the valuation of TikTok is estimated at $138 billion, Reels at $92 billion, and Shorts at $78.5 billion. In terms of monthly active users, Reels leads with 2.35 billion, followed by Shorts with 2 billion and TikTok with 1.8 billion users.
Valuation by Cost per User
Using the average enterprise value-to-monthly active users ratio of $153, the valuation for Reels would be $360 billion, Shorts $306 billion, and TikTok $275 billion. Needham also noted that TikTok users spend an average of 53.8 minutes per day on the platform, while users of Shorts and Reels spend 52 and 35 minutes respectively.
Statistics
| Platform | Market Value | 2023 Revenue | 2024 Revenue Forecast | Valuation by Multiplier | Monthly Active Users | Average Time on Platform (minutes) |
|---|---|---|---|---|---|---|
| TikTok | $218 billion | $15 billion | $18 billion | $138 billion | 1.8 billion | 53.8 |
| Meta Reels | $203 billion | $10 billion | $12 billion | $92 billion | 2.35 billion | 35 |
| YouTube Shorts | $206 billion | $8.5 billion | $10.2 billion | $78.5 billion | 2 billion | 52 |
Leave a Reply