The social networking app Clubhouse, by invitation only, will be pictured on a smartphone on January 26, 2021 in Berlin, Germany.
Thomas Trutschel | Photothek | Getty Images
The Clubhouse social media app, which is available by invitation only, has blown up since its launch in 2020 and retail investors are taking note.
Investors could increase the popularity of the private app by buying shares in Agora, which may have powered the app’s live streaming audio features, and Clubhouse Media Group, which is not affiliated with the social media app, but a similar name has. Shares of Agora rallied more than 44% Monday, hitting a record high of $ 81.48 per share. Clubhouse Media was up more than 116% to a maximum of $ 17.99 each.
Clubhouse and Agora spokespersons did not immediately respond to a request for confirmation of whether the app actually uses Agora’s software.
Clubhouse, the social media app, is like a live, unfiltered podcast. You log into the app and can jump to different “rooms” where live discussions take place on different topics. The app is still in its infancy and most of the discussions are about technology, entrepreneurship and other Silicon Valley issues.
The company, valued at $ 1 billion, has reported strong user growth since its inception, now at more than 2 million. It recently saw a surge in activity early Monday ET, when Tesla CEO Elon Musk joined the platform to discuss a range of topics.
Musk’s arrival could likely be the cause of Monday’s stock surging in what some think are associated companies, as Musk has a strong history of naming a publicly traded company and sending shares. Over the past week, Musk’s nod to Etsy, CD Projekt, GameStop and even the cryptocurrency Bitcoin have pushed prices up.
Now people want to make money from Clubhouse’s growth.
“It’s not widely known, but the app was reportedly built on Agora’s application program interface (APIs) within a week. The ticker is also API. Agora has a usage-based model rather than a subscription, so as the minutes increase, , they make more money If the reports are true, it seems like an under-the-radar way to play Clubhouse’s growth, ”a user posted last week on Reddit’s Wall Street Bets forum, behind the recent GameStop mania.
At the same time, Clubhouse Media is jumping. The stock has increased more than sixfold so far. It’s unclear whether investors are pouring in the stock because they think it’s the social media company, or if they’re buying stock assuming others will believe it’s the social media app.
Similar confusion recently occurred in a confusion between Signal, the encrypted messaging app, and Signal Advance. Previously, investors had confused Zoom Video Communications and Zoom Technologies.
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