📱 TikTok does long Toks
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Hey Snackers,
Some fun trivia as you fire up the BBQ: 245 years ago today, the USA declared independence from the British. But we're celebrating on Sunday because the Declaration of Independence was officially approved on the 4th.
Stocks jumped to records again yesterday as jobless claims hit a new pandemic low. Meanwhile, the US won support from 130 countries in pushing for a global minimum corporate tax rate.
BTW: The stock market is closed on Monday for (extended) Fourth of July, so we'll be back in your inbox on Tuesday 😉
TikTok is rolling out longer videos — but the real story is its Chinese sister Douyin
"Say So," the full version... Well, almost. TikTok is rolling out three-minute videos for everyone, a boost from the current one-minute limit. That means you could learn the full lyrics of viral songs, instead of half a chorus. It also means that the nature of TikTok — and its bite-sized content — could change.
- 24.5 hours: How long the average US TikToker spends on the app each month — over 30 years, that would amount to nearly a full year of life scrolling the Tok (#womp).
- 20 hours: How long US users spends on YouTube each month. YT has biased its algorithm toward viewer retention. Read: longer vids.
- If longer videos lead to higher usage, TikTok could tweak its addicting algorithm to promote long clips.
While vids get longer... the wallet is getting fatter. TikTok's Chinese owner ByteDance saw sales more than double last year to $34B, according to WSJ — nearly 14X Snap's annual revenue.
- Even wilder stat: Last year, ByteDance reportedly had 1.9B monthly users across its platforms, which include TikTok and Douyin, the Chinese TikTok.
- Douyin = the original, non-international version of TikTok used by Chinese nationals. Same branding, same parent, separate content — censored by the Chinese gov't.
ByteDance has the "two worlds" advantage... That could be its biggest competitive edge. Nearly one in four people on Earth use a ByteDance app — that puts it on par with Facebook and YouTube, and far past Snap and Twitter. Meanwhile: Facebook, YouTube, Snap, and Twitter are all banned in China. Because these platforms aren't censored by China, they're closed off from the world's most populous country, limiting their growth. With TikTok and Douyin, ByteDance has the best of both worlds.
LegalZoom jumps after IPO: the DIY legal service is riding high on the business boom
Legally Zoomed... to the public market. When you need legal help, you either a) do hours of Googling, or b) beg your friend to FaceTime with their lawyer mom — anything to avoid paying $500/hour. LegalZoom tries to fix that by offering legal services online. Think: DIY legal documents and e-consultations. You fill out some questions, and LZ whips up completed legal docs. On Wednesday, the 20-year-old company whipped up an IPO:
- LegalZoom shares soared 35% from their IPO price on their first trading day, giving it a $7B+ market cap.
- 8%: LZ's CEO says that only 8% of legal services are delivered online, creating a big opportunity for online legal providers. Legal services market = ~$50B opp.
"Call my e-lawyer... I need to LLC my CBD kombucha startup." 2020 was the best year on record for new business creation, and applications for new businesses have continued to soar this year. LegalZoom reaped the benefits of all those business apps:
- Last year, 10% of new LLCs (limited liability companies) and 5% of new corporations in the US were formed through LegalZoom. LZ's sales soared to nearly half a billion.
LZ is a piggyback stock... to the Creator Economy. In September, WSJ reported that Americans were starting businesses at the fastest rate since 2007. And it's not just brick-and-mortar stores. During the pandemic, Americans created new businesses from Etsy shops, online fitness services, apps, and podcasts. And those creators needed legal docs to seal the deal.
What else we’re Snackin’
- Vax: J&J's Covid vaccine showed promising preliminary signs of protecting against the Delta variant that's spreading across the globe.
- Glazed: Krispy Kreme shares jumped 23% yesterday after the company went public (again) via IDO — Initial Donut Offering.
- Vroom: US car sales are continuing their hot streak, but could slow as dealers face a lack of inventory.
- Awk: Virgin Galactic founder Richard Branson is now embarking on a space flight just days before Jeff Bezos’ Blue Origin space trip (#OutSpaced).
- Taxed: A NY jury has reportedly indicted the Trump Organization and its CFO with tax-related crimes, according to WSJ.
- Gassy: Oil prices surged to a multi-month high while OPEC met to discuss rising demand.
Friday
- The June unemployment rate drops
Authors of this Snacks own shares of: Snap
ID: 1708063