TikTok's parent company ByteDance is valuing itself at $330 billion. One big investor thinks it's worth even more.

"Fidelity, which invested in TikTok's parent company in 2020 through its massive Contrafund, valued the company at more than $385 billion at the end of July, filings show. That is nearly 17% more than ByteDance's self-valuation of $330 billion. According to reports in late August, ByteDance is offering a share buyback program for employees looking for liquidity and valued itself at more than $330 billion, a 5.5% increase from earlier this year, when the company marked itself at $315 billion."

"It's a lofty valuation for a company that struggles to make profits despite tens of billions of dollars in quarterly revenues. But for $6.4 trillion Fidelity, the Chinese company's valuation of itself is low. Fidelity's valuation of the company considers ByteDance more valuable than public companies such as defense tech firm Palantir and Wall Street staple Bank of America. Fidelity declined to comment. ByteDance did not immediately respond to a request for comment."

Fidelity marked ByteDance at more than $385 billion at the end of July, significantly above ByteDance's own $330 billion valuation. ByteDance is conducting a share buyback for employees that values the company at $330 billion, up from $315 billion earlier in the year. The company posts tens of billions in quarterly revenues but continues to face profitability challenges. Fidelity's valuation places ByteDance ahead of several major public companies, including Palantir and Bank of America. ByteDance may understate valuation during buybacks to acquire equity at a discount. A U.S. divestiture deadline for TikTok operations could materially affect ByteDance's position.

Read at Business Insider