Byte refutes rumors of speculation on A-share Doubao concept stocks

　　According to Fast Technology on December 20, the A-share market has recently seen a wave of speculation on Doubao concept stocks, with related concept stocks such as Visual China and 3D Communications being hyped. Among them, Visual China's cumulative increase in the past 13 trading days has reached 103.76%.

　　On the evening of December 19, ByteDance refuted rumors that the capital market was hyped about “Doubao concept stocks,” which involved exaggerated and even fictitious content in ByteDance's capital expenditures, data center costs, AI hardware, application cooperation, and other aspects.

　　Image source: screenshot from ByteDance's official account

　　On that day, Douyin concept stocks rebounded rapidly, Nanling Technology hit the daily limit of 20CM, Ruijie Network rose more than 10%, Huizhou Smart hit the daily limit, O-Net Technologies, Fushi Holdings, and Yakang Holdings rose more than 5%, and Feng Assistant, Runze Technology, Hande Information, and others followed suit.

Reasons for the strong performance of “Bean Bag” concept stocks

　　On December 18, 2024, ByteDance released the Doubao visual understanding model at the “2024 Volcano Engine FORCE Power Conference Winter”. Doubao's input price for Visual Understanding is 0.003 yuan per thousand tokens, which is 85% lower than the industry average price, leading to the input cost of the visual understanding model to enter the cent era.

　　As a result, rumors circulated that ByteDance was launching another price war for big models. Douyin Vice President Li Liang responded in a post: This is not a price war. This is a transparent price that is in place in one step, not a “standard price + discount” game.

　　Li Liang said that Doubao Big Model reduces costs through technological innovation, and has made a lot of optimizations in algorithms, software engineering, and hardware solutions. The pricing of 3 cents/thousand tokens also has considerable gross profit.

　　As of the end of November 2024, Doubao App's cumulative user scale in 2024 has exceeded 160 million. According to data from Volcano Engine, the average daily usage of Doubao tokens in December exceeded 4 trillion, an increase of more than 33 times compared with the release period in May.

　　Companies such as XuanYa International (300612.SZ), Insai Group (300781.SZ), and Shengtian Network (300494.SZ) have already used or connected the Doubao model for AI, video creativity, digital humans, and other businesses or scenarios.