5 Stocks Under $25 to Buy According to Billionaire Philippe Laffont

3. Agora, Inc. (NASDAQ:API)

Coatue Management’s Stake Value: $277,315,000

Percentage of Coatue Management’s 13F Portfolio: 1.12%

Number of Hedge Fund Holders: 11

Share Price as of January 12: $15.34

Agora, Inc. (NASDAQ:API) represents 1.12% of Coatue Management’s total third quarter investments, with the hedge fund owning 9.5 million shares of the company worth $277.3 million. Agora, Inc. (NASDAQ:API) is a software company offering on-demand real-time engagement services via video, voice, and messages. 

Agora, Inc. (NASDAQ:API) reported its Q3 results on November 15, announcing a loss per share of $0.10, missing estimates by $0.01. The quarterly revenue equaled $45.04 million, up 46% year-over-year, exceeding estimates by $5.38 million. 

API Needham analyst Vincent Yu lowered the price target on Agora, Inc. (NASDAQ:API) to $27 from $40 but kept a Buy rating on the shares on November 24. Agora, Inc. (NASDAQ:API)’s Q3 revenue and gross margins were better than expected, and its social entertainment in China’s domestic market and virtual event services in overseas markets are expected to become its growth drivers.

11 hedge funds in the database of Insider Monkey were bullish on Agora, Inc. (NASDAQ:API) in Q3 2021, with stakes totaling $354.6 million, as compared to 17 funds holding stakes worth $564 million in Agora, Inc. (NASDAQ:API) in the preceding quarter. 

Here is what Tao Value has to say about Agora, Inc. (NASDAQ:API) in its Q3 2021 investor letter:

“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited Agora (ticker: API) as we estimated that it has 25+% of evaporating revenue tied to online education use cases, but the management seemed to be evasive about the potential impact.”