Anghami (NASDAQ:ANGH) made history this month after being the first Arab technology company to be listed on the Nasdaq exchange. The company went public after merging with special purpose acquisition company (SPAC) Vista Media. In addition, the transaction provided Anghami with gross proceeds of $220 million. Anghami operates as a music-streaming platform in the Middle East and North Africa (MENA). Today, shares of ANGH stock closed higher by over 150% after being halted several times.
There is no material news to explain Anghami’s volatility today. However, ANGH stock has a low total shares outstanding of only 25.82 million shares. This makes the stock more susceptible to large price swings and manipulation. In addition, today’s volume came in at 16 million shares, which is more than 19X the average volume of 830,000 shares. On Stocktwits, message volume concerning the ANGH stock ticker has increased by more than 350% as well.
On top of today’s gain, the price of ANGH stock has increased over 200% during the past month. The company currently carries a low market capitalization of $745 million.
What’s Next for ANGH Stock?
Anghami is actively seeking to increase its customer base. Currently, the music platform charges $4.99 a month, or $44.99 per year, although rates may vary in different countries. Furthermore, Anghami believes that the music-streaming industry is still in its early stages. In 2020, the International Federation of the Phonographic Industry (IFPI) reported that there were 443 million paid users in the music-streaming industry. Anghami believes this figure has the potential to expand significantly, as there are 3.8 billion smartphone users worldwide. At the end of 2020, Anghami had 18.3 million active users and more than 9 billion streams during the year.
However, Anghami has quite a lot of competition in the form of Spotify (NYSE:SPOT) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Play. Other risks to the company include changes in preferences, declining ad-supported free users and a reliance on third-party licenses. Anghami currently has more than 40 partners in the MENA region, including Warner Music Group (NASDAQ:WMG) and Sony Music (NYSE:SONY).
At the time of writing, the streaming platform has not yet announced when it will release earnings next.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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