Clubhouse Media Group (CMGR) is a rapidly developing story that has gotten little traction with retail investors yet, despite what appears on its face as a very strong thesis, a unique model with a strong narrative looking ahead in its industry, and extremely robust metrics that 20th-century investors have difficultly appreciating, but in a 21st-century world.
Visibility is also likely a key for CMGR – a big key. And on that note, it has been making truly impressive strides.
For example, if you’re a NASCAR fan, you may have noticed the Clubhouse logo on display over the weekend in a NASCAR Cup Series event, which typically draw millions of eyeballs.
That’s an interesting statement in its own right given that “visibility”, per se, is the company’s raison d’être. CMGR is something that looks an awful lot like an entirely new species of company, alone and basically unchallenged in an emerging niche in which it is basically the only publicly traded pure play – and it’s a big niche.
Hence, it’s interesting.
It is also interesting because it has such sudden and impressive traction given its model – the company is a social media influencer-based marketing and branding platform that already has a stable of influencers with an aggregate global reach of over 400 million followers.
That puts CMGR in disruptive relationship with some of the most widely followed stocks in the market today, including Facebook, Inc. (NASDAQ:FB), Pinterest Inc (NYSE:PINS), Snap Inc (NYSE:SNAP), Trade Desk Inc (NASDAQ:TTD), Twitter Inc (NYSE:TWTR), CBS Corporation Common Stock (NASDAQ:VIAC), and Roku Inc (NASDAQ:ROKU).
It’s the $150 billion advertising industry, such as it is today, sailing uncharted waters somewhere amid a historic transition from traditional media to a mix of algorithms and influencers. And CMGR has all the hallmarks of an extremely interesting dark horse galloping up the leaderboard on the outside lane.
We take a look below at some of the more interesting stories in the space, including CMGR.
Pinterest Inc (NYSE:PINS) is a mainstay in the social media space, though it fails to garner nearly as much attention as FB and TWTR. The company has been making strides of late and continues to attempt to position itself as a contender through innovations that drive sticky engagement. It shouldn’t be overlooked given recent numbers, with nearly 80% y/y growth on the topline. That will be put to the test once again on July 29, when the company puts its pencil down on Q2.
The company engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies.
Pinterest Inc (NYSE:PINS) recently announced that it is expanding Idea Pins, its multi-page video Pin format, to all creators in India, Indonesia, Spain, Italy, Ireland, New Zealand, Brazil, Mexico, Argentina, Chile, Columbia, Peru, Japan, and Sweden. This new access and capability will empower anyone with a business account in these countries to create inspiring content and closer interact with their audiences, building more engaged communities directly on Pinterest.
“We believe the best inspiration comes from people who are fueled by their passions and want to bring positivity and creativity into the world. From creators to hobbyists to publishers, Pinterest is a place where anyone can publish great ideas and discover inspiring content. With Idea Pins, creators are empowered to share their passions and inspire and grow their audiences. By helping people on Pinterest spark creativity, try new things, build confidence, and be themselves, we believe creators are truly helping with our mission of bringing inspiration to create a life you love.” – Evan Sharp, Co-Founder, Chief Design and Creative Officer, Pinterest.
Even in light of this news, PINS has had a rough past week of trading action, with shares sinking something like -11% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -6%.
Pinterest Inc (NYSE:PINS) managed to rope in revenues totaling $485.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 78.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($2B against $209M).
Snap Inc (NYSE:SNAP) is in a similar position to PINS and will put out its own June-Q numbers this week, on Thursday, July 22.
The company engages in the operation of its camera platform. Its products include Snapchat, using the camera and editing tools to take and share Snaps, Friends Page, which lets users create and use Stories, Groups, Video and Chat, Discover for searching and surfacing relevant Stories, Snap Map, which shows friends, Stories and Snaps near the user, Memories, for saving personal collections, and Spectacles, wearable sunglasses capable of taking Snaps and interacting directly with the Snapchat application. The firm’s primary source of revenue is advertising.
Snap Inc (NYSE:SNAP) recently announced that Darcie Henry will join the company as Chief Human Resources Officer (CHRO) on July 6, 2021, reporting to CEO Evan Spiegel. The appointment follows Snap’s current Chief People Officer Lara Sweet’s decision in March 2021 to retire.
“Darcie’s experience leading large, rapidly growing teams around the world will be a tremendous asset to Snap, and her humble, kind approach is the perfect fit for our culture,” commented Mr. Spiegel. “We are confident that Snap will benefit from her many talents and we can’t wait for her to get started.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action SNAP shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -10% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -5%.
Snap Inc (NYSE:SNAP) managed to rope in revenues totaling $769.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 66.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($2.6B against $751.9M).
Clubhouse Media Group Inc (OTCMKTS:CMGR), as noted above, is the interesting speculative dark horse play in the broad theme of the transition in the ad space away from traditional media toward social influencers. By comparison to PINS and SNAP, CMGR is not a social platform. However, it’s future growth potential is rooted in some of the very same secular trends, as the ad industry turns increasingly to the social influencer model.
The company may be the only publicly traded pure play on this theme. It offers management, production, and deal-making services to its handpicked influencers, a management division for individual influencer clients, and an investment arm for joint ventures and acquisitions for companies in the social media influencer space.
Clubhouse Media Group Inc (OTCMKTS:CMGR) recently announced its aforementioned rise to more than 400 million total aggregate social media followers in terms of the reach its platform offers prospective marketing and branding clients. On its face, that implies potentially as much as about 5% of the entire world’s population.
“We continue to see organic growth in followers as our influencers build their core communities and we benefit from cross-pollination of those communities through our unique Clubhouse model,” noted Simon Yu, Co-Founder and COO of Clubhouse Media. “We also continue to work hard every day to discover emerging social media stars with the potential to become top-tier global influencers.”
The company notes in its release that it defines its “aggregate global social media reach” as the sum total of all followers across all social platforms of all of the Company’s influencers added to the sum total of all followers across all social platforms of all of the Company’s owned social media accounts.
As noted, as of July 10, 2021, the Company’s total aggregate global social media reach stood at just over 400 million, with approximately 290 million followers on TikTok, 51.7 million followers on Instagram, 56 million followers on YouTube, 2.6 million followers on Snapchat, and 2 million followers on Twitter.
Clubhouse Media Group Inc (OTCMKTS:CMGR) has suffered a bit of late, with shares of CMGR taking a hit in recent action, down about -15% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -36%. However, as stated in its recent communications, it has only just started to actively monetize its massive base. That suggests the current pullback could represent an interesting opportunity.
