Global eCommerce giant Amazon (NASDAQ:AMZN) could soon have to face off against another rising Chinese eCommerce name on its home turf. According to Bloomberg, ByteDance’s TikTok is looking to increase its U.S. business by as much as tenfold this year. That would be around $17.5 billion.
TikTok’s format of bringing together online content and shopping has led to rapid growth for the app. Reportedly, its volume targets were discussed internally and could still change as the year unfolds.
Importantly, the significant sales target could see TikTok compete with Amazon, as well as PDD’s (NASDAQ:PDD) Temu, and Shein. While Temu and Shein have clocked rapid gains on the back of low pricing, TikTok will bank on its short-form content and viral trends to reel in buyers.
According to Bloomberg, TikTok saw global merchandise value of around $20 billion last year. The popular app is now setting its sights on expanding sales in the U.S. and Latin America. Impressively, TikTok has already garnered nearly 150 million users in the U.S.
Is Amazon a Buy, Sell, or Hold?
Meanwhile, Amazon’s move to introduce advertisements on Prime Video content seems to be received positively by Wall Street. Overall, the Street has a Strong Buy consensus rating on Amazon. Following a nearly 73% jump in the company’s share price over the past year, the average AMZN price target of $183.28 points to a further 23.45% potential upside in the stock.
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