No one talks about inflation much anymore, although the $1.9 trillion stimulus plan now working its way through Congress has sparked a little chatter of its revival. But judging by some recent stock valuations, we’ve already got inflation—in asset prices on the stock market.
The latest example is Kuaishou, the Chinese company that, like TikTok, runs an app displaying short videos. As The Information reported earlier today, Kuaishou stock nearly tripled on its first day of trading in Hong Kong on Friday. That rally gave Kuaishou a market capitalization of $160 billion, a rich number for a company that doesn’t make money and had revenue of just $6.3 billion in the first three quarters of this year. Kuaishou’s valuation also implies TikTok’s parent ByteDance could be worth $600 billion, that is, more than three times where it raised money in December.