about 3 years ago • 1 min
Shares of Agora have surged 142% this year after reports linked the Chinese firm’s software tools to Clubhouse, the fast-growing US app that allows users to host audio-only chat rooms.
Decompiling the Clubhouse app’s code reveals Agora’s name, meaning Clubhouse is using some of its development tools, according to a Bloomberg report citing two engineers.
Investors desperate to buy into the Hot New Thing are sending Agora stratospheric. The shares (shown in blue on the chart) now trade for nearly double the average analyst price target (in yellow). And they’re priced at 68 times the company’s projected revenue, compared with 1.3 times for the average stock in China’s benchmark Shanghai Composite Index.
Ironically, this Chinese firm is benefiting from the buzz even after China’s government blocked access to the Clubhouse app earlier this week.
Agora is due to report fourth-quarter results on February 22nd. We’ll have to wait and see if they unveil further details of any relationship with Clubhouse.
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