Lizhi Inc (NASDAQ:LIZI) continues to rise

As some conservative investors are getting more into communication services space, Lizhi Inc ADR could be a your radar. We will evaluate why we are still optimistic in anticipation of a recovery. This post is to show some fundamental factors affecting Lizhi Inc's products and services. I will also lay out how it may impact the investing outlook for the company in January.
Published over a year ago
View all stories for Lizhi | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

About 2.0% of Lizhi Inc shares are owned by institutional investors. Insiders ownership of Lizhi Inc ADR refers to the amount of Lizhi Inc ADR equity owned by Lizhi officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Lizhi, including its current ownership diagnostics.
The performance of Lizhi Inc in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Lizhi's stock prices. When investing in Lizhi, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Lizhi Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Lizhi carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is Lizhi's Liquidity

Lizhi financial leverage refers to using borrowed capital as a funding source to finance Lizhi Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lizhi financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lizhi's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lizhi's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Lizhi's total debt and its cash.

Breaking down Lizhi Indicators

Lizhi Inc ADR holds a total of 46.13 Million outstanding shares. Roughly 98.0 % of Lizhi Inc outstanding shares are held by regular investors with 0.0 pct. owned by insiders and only 2.08 % by institutional investors. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Ownership Breakdown

Retail Investors
97.92%
Retail Investors97.92
Insiders0.0
Institutions2.08

Will Lizhi Inc growth be reliable after the rise?

The value at risk is down to -10.5 as of today. Lizhi Inc ADR is displaying above-average volatility over the selected time horizon. Investors should scrutinize Lizhi Inc ADR independently to ensure intended market timing strategies are aligned with expectations about Lizhi Inc volatility.

Our Final Take On Lizhi Inc

While some companies within the internet content & information industry are still a little expensive, even after the recent corrections, Lizhi Inc may offer a potential longer-term growth to stockholders. To conclude, as of the 4th of December 2020, our concluding 30 days 'Buy-Sell' recommendation on the company is Hold. We believe Lizhi Inc is undervalued with average probability of distress for the next two years.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Lizhi Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com