China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Andy Fu, CFA

Equity Bottom-Up

<ul>
<li>Agora share price rallied 34% on C3Q24 earning call. During the call Agora outlined plans for large scale layoffs and committed to turn profitable for full year 2025;</li>
<li>With the business rationalization, cooperation with OpenAI now becomes the only growth driver for the future. We believe with Agora's operation-oriented business model, there is a fair chance for success;</li>
<li>Considering the price cut speed of 10x in one year from Chat GPT, the audio GAI price lower from US$9/hour to US$1/hour could happen within one year.</li>
</ul>


Agora share price rallied 34% on C3Q24 earning call. During the call Agora outlined plans for large scale layoffs and committed to turn profitable for full year 2025;
With the business rationalization, cooperation with OpenAI now becomes the only growth driver for the future. We believe with Agora's operation-oriented business model, there is a fair chance for success;
Considering the price cut speed of 10x in one year from Chat GPT, the audio GAI price lower from US$9/hour to US$1/hour could happen within one year.


Agora (API US): Rationalizing All Biz and Zero in on OpenAI

Agora Inc.

Agora (API US): Rationalizing All Biz and Zero in on OpenAI