Why This Stock Is A Derivative Play On The Rise Of Clubhouse
Benzinga founder and CEO Jason Raznick explained Wednesday on "ZingerNation Power Hour" why he invested in Agora, Inc. (NASDAQ:API), a provider of application programming interfaces (APIs) to embed real-time video and voice engagement.
Clubhouse Derivative Play: The meteoric rise in recent months of the social media app Clubhouse prompted Raznick to look for ways to indirectly profit from its surge in popularity, he told guest Mia Khalifa.
Since Clubhouse is not a public company, investors need to look for "derivative" plays.
Raznick's strategy has proven to be profitable in this case, but he is far from the only investor to look outside of the box.
Shares of Agora soared more than 40% after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk made an appearance on Clubhouse.
It has yet to be confirmed that Agora's technology even powers Clubhouse in the first place, according to CNBC.
Shares of Agora are up around 100% since the start of 2021 and nearly 85% over the past year.
API Price Action: Agora shares were up 21.24% at $90.77 at the close Wednesday.
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