The invitation-only audio chat social networking app, Clubhouse, is shown on a smartphone on January 26, 2021 in Berlin, Germany.
Thomas Trutschel | Photothek | Getty Images
The Clubhouse Invitation-only audio social networking app has exploded since its launch in 2020 and retail investors are taking note.
Investors could be playing the popularity of the private app by buying shares in Agora, which may have boosted the app’s live audio features, and Clubhouse Media Group, which is not connected to the social networking app, but it has a similar name. Shares of Agora rose more than 44% Monday to a record high of $ 81.48 per share. Clubhouse Media rose more than 116% to a high of $ 17.99 per piece.
Clubhouse and Agora spokespersons did not immediately respond to a request for confirmation as to whether the app actually uses Agora software.
Clubhouse, the social networking app, is similar to a live, unfiltered podcast. Log in to the app and you can jump to different “rooms” where live discussions on various topics take place. The app is still in its infancy and most of the debates are about technology, entrepreneurship and other Silicon Valley issues.
The company, valued at $ 1 billion, has seen strong user growth since its inception, now exceeding $ 2 million. Lately, in early Monday ET, Tesla CEO Elon Musk joined the platform to discuss various issues.
Musk’s arrival could likely be behind Monday’s rise in shares in what some believe to be associate companies, as Musk has a strong history of mentioning a listed company and sending shares. Last week, Musk’s gestures on Etsy, CD Projekt, GameStop and even Bitcoin cryptocurrency have pushed up prices.
Now, people want to monetize the growth of the Clubhouse.
“Not much is known, but apparently the app was based on Agora’s application program interface (API) in a week. The bookmark is also API. Agora has a usage-based model instead of subscribing, so as the minutes go by they make more money. If the reports are true, it seems like a less radar way to play Clubhouse Growth, “a user posted last week on the betting forum. Reddit Wall Street, which is behind the recent GameStop craze.
At the same time, Clubhouse Media jumps. Stocks have multiplied by six to date. It is unclear whether investors invest in stocks because they believe it is the social media company or whether they buy shares assuming others will believe it is the social media app.
There has recently been a similar confusion in a mix between Signal, the encrypted messaging app, and Signal Advance. Earlier, investors mixed Zoom Video Communications and Zoom Technologies.
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