Lizhi (LIZI -3.07%) was the second-best performing stock on the market Wednesday morning, with shares rising nearly 70% after the Chinese podcasting outfit released a shareholder letter.
Lizhi is the leading podcast platform of its type in China, having differentiated itself from the competition by focusing on user-generated content produced with in-app recording tools.
It went public a year ago, offering 4.1 million shares at a price of $11 per share, which was actually at the low end of the forecast $11 to $13 range. Since then, though, the stock has crumbled to $2 per share and has become the subject of numerous lawsuits angling for class action status.
However, it has the largest community of user-generated audio content in China, with a base of 56.2 million average monthly active users on mobile and over 448,000 average monthly paying users.
In the note, Lizhi founder and CEO Jinnan (Marco) Lai laid out some goals for the company in the coming year, and remarked on the momentous changes it's undergone over the past 12 months, including its IPO. Yet there was no real meat on the bone that should cause the stock to soar as it has today.
Even though Lizhi didn't offer just platitudes, there was nothing concrete that should have excited investors so, and a measure of caution should continue to be exercised with this communications stock.