LIZI stock price surged up to 489.23% higher over the lowest price of the stock set at $1.95 in a 52-week range. However, the current price level was31.40% lower as a Class Action lawsuit had been filed against LIZI alleging that the company’s registration statement produced misleading declarations and had inadequate disclosure of information. Most investors were encouraged to contact litigation firms for financial compensation.
However, Lizhi Inc. Quarterly revenue increased by 15% to a staggering $64.4 million. This happened as the estimated number of monthly users of LIZIclimbed from 51.9 million to approximately 58.4 million. LIZI share price had risen up to 31% after the release of the quarterly report. For the full 12 months, revenue increased 27% to $230.3 million, bringing the market capitalization of the company to a whopping $428.96M.
Will LIZI be successful in remaining competitive?
The Chinese entertainment company operates audio-based social networks, podcast portfolios, and several audio communities as well as working through a cross-border audio ecosystem. With over 58M regular users, LIZI has also released an ad notifying its users about its expansion into online dating.
Furthermore, LIZI has revealed that it is working together with ECARX, a dominant automotive intelligence company. Hence further diversifying its portfolio and becoming a major stake holder in several lucrative markets.
Conclusion:
LIZI operates in the remunerative field of audio based social networks, automotive software as well as online dating. Its long-term revenue growth and an increasing number of average daily users have proven to anticipate great sales, however recent disapproval by certain investors and litigation problems have plummeted LIZI stocks substantially.
