In the dynamic realm of music streaming, one company stands out as a melodious force – Anghami. As the world embraces digital entertainment, Anghami has carved a resonating niche as a pioneering platform for music enthusiasts. Founded in 2011, Anghami has transformed the way people access and enjoy music across the Middle East and North Africa.
Anghami operates in the booming music streaming industry, a sector that is expected to experience remarkable growth in the coming years. The global music streaming market size was estimated at $34.53 billion in 2022 and is expected to grow at a compound annual growth rate of 14.4% from 2023 to 2030.
The Middle East and North Africa region, where Anghami predominantly operates, boasts a youthful population that has embraced digital technologies with zeal. Anghami’s strategic positioning within this culturally diverse and musically rich landscape has bestowed it with immense growth potential. As the appetite for streaming continues to rise, Anghami is poised to tap into this market’s upward trajectory, offering investors an alluring entry into the digital music frontier. The company’s journey from inception to its current status as a publicly traded entity reflects its ambition to harmonize technology, entertainment, and investment potential.
Anghami Stock Key Features
- Leading music streaming platform in the MENA region. Anghami was founded in 2011 and is headquartered in Beirut, Lebanon. It is the most popular music streaming platform in the MENA region, with over 100 million registered users and over 1.5 million paying subscribers. It has a market share of nearly 60% in the region. Anghami’s popularity is due to a number of factors, including its large library of music, its affordable subscription fees, and its localized features.
- Strong growth potential. The MENA music streaming market is growing rapidly, with a compound annual growth rate (CAGR) of over 20% expected from 2022 to 2027. This growth is being driven by a number of factors, including the increasing popularity of smartphones, the growing middle class in the region, and the rising demand for Western music. Anghami is well-positioned to capitalize on this growth, given its leading market position and strong brand recognition.
- Investment in technology. Anghami is investing in technology to improve its platform. This includes investing in artificial intelligence (AI) and machine learning (ML) to personalize the user experience. Anghami is also investing in cloud computing to improve the scalability and performance of its platform.
- Diversified revenue streams. Anghami generates revenue from a variety of sources, including subscription fees, advertising, and licensing. This diversification helps to reduce Anghami’s risk and makes it more resilient to changes in the music streaming market. Subscription fees are Anghami’s main source of revenue, accounting for over 70% of total revenue. Advertising is the second largest source of revenue, accounting for over 20% of total revenue. Licensing is the third largest source of revenue, accounting for over 10% of total revenue.
- Strong management team. Anghami is led by a team of successful executives. Eddy Maroun, the CEO, possesses a master’s in private law and an MBA in international business from Bordeaux Business School. He was designated an Endeavor high-impact entrepreneur in 2013 and named a Lebanese Top Entrepreneur in both 2012 and 2013. The other members of the management team also have extensive experience in scaling companies. For instance, the co-founder and CTO cofounded two successful companies before Anghami.
Anghami Stock Over the Years – Review
Anghami stock price has been on a downward trend for the past one and a half years, with the main cause being the company’s widening losses and expensive valuation. In 2021, Anghami reported a net loss of over $17 million, which ballooned to $61 million in 2022. Moreover, the company’s Price-to-Sales multiple on its trading debut in early 2022 was as high as 20x, significantly higher than Spotify’s PS ratio of around 3x at the time. As a result of these challenges, Anghami’s stock price has fallen by over 80% from its peak in 2022.
However, there are some signs that angh stock price may be bottoming out. The company’s revenue growth accelerated from 16.5% in 2021 to 36.5% in 2022. Moreover, its losses have narrowed significantly in recent quarters. If Anghami can continue to improve its financial performance, its stock price may start to recover.
Anghami Stock in 2023
As of August 17, Anghami stock is trading at $1.12 per share. This is down significantly from its all-time high of $17.70 per share in 2022. This year angh has fluctuated between $0.72 and $2.31 per share. It is currently down nearly 30% for 2023 and the company’s market capitalization is $29 million.
While the company’s growth has accelerated in recent quarters and losses have improved, the company has failed to timely file its annual report, called Form 20-F, with the U.S. Securities and Exchange Commission (SEC). This has raised concerns among investors about the transparency and reliability of the company’s financial reporting. The delay in filing the annual report can lead to uncertainties and potential legal implications, affecting investor confidence, and as a result, the stock price.
Anghami Stock in 2022
2022 was the year Anghami became a public company via a reverse merger with the shell corporation Vistas Media Acquisition Company. The stock surged shortly after its debut and reached an all-time high of approximately $18. This was driven by investor enthusiasm for the company that touted itself as the Spotify of the MENA region. Moreover, retail investors in trading chat rooms such as the angh stocktwits account promoted the stock, causing a short-term rally.
The almost 100% rally in February didn’t last for long. The tech-heavy Nasdaq index began to fall sharply in late February and early March following the Russian invasion of Ukraine, dragging down most tech stocks including Anghami. The market selloff in 2022 severely impacted angh which fell over 84% for the year.
How To Invest In Anghami Shares
Individual investors have several avenues to invest in Anghami’s shares, each catering to different preferences and risk profiles. Here are some options:
- Stocks: Directly purchasing Anghami’s stock on a stock exchange is the most straightforward method. Investors can buy and sell shares at prevailing market prices, gaining potential capital appreciation. This method provides maximum control but requires active monitoring.
- Mutual Funds: Mutual funds are traditional investment vehicles that pool money from multiple investors to invest in a diversified portfolio, which may include Anghami shares among other assets. This approach offers diversification and professional management, ideal for those seeking exposure without extensive research.
- Exchange-Traded Funds (ETFs): Similar to mutual funds, ETFs comprise a collection of stocks. They trade on stock exchanges like individual stocks, providing liquidity and real-time pricing. Anghami’s shares could be part of specific sector or thematic ETFs.
- Options and Derivatives: Advanced investors might consider using options and derivatives to speculate on Anghami’s share price movements. These instruments carry higher risk and complexity, requiring a solid understanding of the market.
- Robo-Advisors: These automated investment platforms build portfolios based on investors’ risk tolerance and goals. They might include Anghami shares if they fit the chosen investment strategy.
Investors can also buy Anghami shares via eToro, which offers a seamless digital platform, connecting investors to this innovative music streaming opportunity.
Since its inception in 2011, Anghami has been a transformative force in Middle Eastern music streaming. Boasting over 100 million users, the platform has been pivotal in reshaping how the region consumes music. With the music streaming industry projected to grow at a 14.4% compound annual rate until 2030, Anghami’s strategic foothold holds substantial promise.
Although facing an 80% stock drop in 2022 due to mounting losses and valuation concerns, glimmers of hope emerged through accelerated revenue growth. Presently trading at $1.12, investor confidence is tempered by delayed annual report submissions, raising transparency and reliability apprehensions. Anghami’s trajectory epitomizes the interplay of potential and challenges within the dynamic tech market.
Yes, Anghami does have a competitive advantage over Spotify in certain aspects. Anghami’s localized approach, extensive library of regional music, and tailored user experience provide it with distinct strengths compared to Spotify’s global platform. Anghami’s deep understanding of local cultures and preferences allows it to offer a more personalized and relevant music streaming experience for users in the MENA region, which can lead to higher user engagement and retention. Additionally, Anghami’s partnerships with local music labels and artists contribute to a richer collection of regional content. However, it’s important to note that Spotify remains a dominant player in the global music streaming market and has its own set of advantages, such as a vast global user base and a wider range of international music.
Anghami’s financials are a mixed bag. While the company’s revenue growth accelerated to 37% in the most recent quarter, from 29% in the same period a year ago, it still didn’t deliver a positive net income. Anghami is still a loss-making business. This means that the stock may not rebound if the comapny doesn’t improve its profitability in the near future.
While it is difficult to determine the fair value of a loss-making business like Anghami, it seems that the company is now fairly valued or even undervalued. At current prices of around $1.12 per share, it trades at a PS ratio of 0.6x, which is much lower than Spotify’s PS ratio of 1.9. If the company delivers solid results in the coming quarters and years, Anghami stock has significant multiple expansio potential. However, if the company’s growth slows or profitability doesn’t improve, the stock may not renbound from the current levels.
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