Shares of Lizhi (NASDAQ:LIZI) are on the move today. At the time of writing, investors in LIZI stock have booked a gain of more than 25%.
Why the dramatic upside?
Well, today LIZI stock got a big, bullish analyst call in its favor. Let’s dive into what all the commotion is about.
Citron Research Is Jumping on LIZI Stock
Today, a tweet from former short-seller-turned-long-only firm Citron Research invited intrigue into this stock. Citron noted the company’s strong existing business model as a “cross-section of Clubhouse, Roblox.” However, the bigger news which apparently has Citron excited on this stock is Lizhi’s move to expand into the dating app space.
Citron’s so bullish on this company, it placed a $30 price target on LIZI stock. Given where shares closed yesterday at just over $10, that’s a nearly tripling of this stock. The fact that Citron believes it is possible in the near term is certainly a call that has bulls salivating.
Given Citron’s assessment of Lizhi being a cross-section of Roblox (NYSE:RBLX) and Clubhouse, investors may be enticed on this factor alone. Roblox has done incredibly well since its IPO last week, and this is a stock with a ton of attention right now. It appears Citron is looking to take advantage of the sentiment surrounding this outperformance in its assessment of LIZI stock.
Why Investors Think Lizhi Could Be the Next Big Thing
Lizhi is an interesting company focused on building a social network and audio community around podcasts. It “aims to bring people closer together through voices by its product portfolios.”
The company’s products allow users to interact in real time, and connect with and entertain friends with similar interests. The company’s LIZHI Podcast is one which Citron believes could have a similar cult following to other mainstream platforms such as Clubhouse. That is high praise for sure.
Citron notes Lizhi ranks among the top 10 social networking apps in 70 countries. Indeed, this isn’t a small player in the market. Investors like Citron seem to believe incredible upside potential exists here, relative to larger players which may see slower growth due to their size.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.