Lizhi Stock Analysis, Forecast & Price Prediction: 5 Reasons to Buy LIZI Shares

YouTube video

Lizhi (LIZI) stock announced a partnership with Xpeng (XPEV), which put the stock on my radar. They are the #1 largest user generated content audio app in China with over 56 million MUAs (as of Q3 2020).

LIZI Stock Analysis Breakdown

Here are 5 reasons why I’m buying LIZI stock:

  1. Undervalued – LIzi stock generates around $200 million in revenue yet the market cap is under $200 million. That gives us a P/S ratio of around 1. Clearly, the stock is undervalued since user generated content apps tend to grow over time (think Facebook, Twitter, Youtube, Spotify)
  2. Xpeng Partnership – The Xpeng partnership will generate more revenue and new listeners on the platform. At just a small market cap, this new partnership allows Lizhi to benefit from the power of proximity.
  3. Cheap Chinese exposure – It’s time to add Chinese stocks to my portfolio since I don’t currently have any positions. Lizhi looks cheap and I wanted to get in on the ground floor.
  4. PCAOB registered auditor – The house passed a bill to delist foreign companies that don’t used PCAOB registered accountants. Lizhi uses the same independent auditor as Nio, Pricewaterhousecoopers Zhong Tian LLP.
  5. Mobile is the future – As more people get connected to the internet, mobile apps will see tremendous growth in the future. I think Lizhi can benefit from this boom in technology.

Future LIZI Stock Forecast & Price Prediction

I bought some shares @ $4.22 and plan to add to my position over time. Lizhi provides plenty of diversity to my portfolio and adds a proven audio app that can continue to generate cashflow in the future. User generated content is big business and let’s hope Lizhi cashes in!

Revenue was up 10% YoY and the new partnership will accelerate this trend. As revenue increases, the company will attract new buyer interest.

If we give Lizhi a conserative P/S ratio of 5 to 10 then the stock could be worth $20 to $40 in the near future. It’s simply undervalued and underappreciated as a whole.

Future LIZI Stock Price Target = $20 to $40

Remember, this is just a projection based on my personal research. Do your own research and use stop loss orders to limit your downside risk. Thanks for reading!


Join 200+ Investors Getting The Investor Trip Weekday Newsletter

Tarik Pierce

Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website. He studied Economics at Dartmouth College and invests in a mix of dividend stocks, high CAGR tech stocks & cryptocurrencies.