Are you looking to trade Clubhouse stock? If so, then you’re out of luck. As of now, this is a privately owned company. While you cannot trade this company, you can download it to your phone and have a chat with strangers. That is, if you’re looking for another social media app to waste time on haha!
What is Clubhouse?
Aside from being a word that describes a delicious sandwich, Clubhouse is also the name of a new social media app. They launched in 2020 as an audio-only platform. So instead of scrolling through pages and pages of text, users are able to join into pre-built audio rooms or clubhouses. Kind of an old school idea, but in a new school kind of way.
You’re able to listen to or even join a discussion about a specific topic. People take turns speaking in what amounts to a podcast like setup. In fact, there are even rooms that are regularly hosted by celebrities, business leaders, and industry experts.
The idea of Clubhouse is to be able to provide a more intimate and fruitful discussion space; rather than the toxic cesspool that can come with engaging in fintwit comments. For clubhouses led by a specific speaker, think of it as a live online podcast or conference that can be attended by all who wish to listen.
Honestly, it seems to be an idea born during the COVID-19 pandemic; as it accommodates millions of people who are stuck inside of their homes, longing for some sort of human contact beyond a text message or email. So maybe we’ll see a Clubhouse stock coming soon.
Can I Buy Clubhouse Stock?
Currently, the answer is unfortunately no. There is no Clubhouse stock. It’s a privately run company that’s owned by its parent company: Alpha Exploration Co. and was founded by Paul Davison and Rohan Seth in the Spring of 2020.
Venture capital firms took an immediate shining to the app and an initial round of investing brought in the Silicon Valley investment firm Andressenn Horowitz which specializes in early stage tech startups.
Some of the firm’s early investments include the top names in the tech industry like Twitter, Github, Coinbase, Lyft, PagerDuty. And recently invested $150 million in the upcoming videogame IPO for Roblox.
While there has been some early discussion about Clubhouse becoming a publicly traded stock, the company is still in its infancy and the platform has not even picked up full traction yet.
A recent valuation of the company at the end of January, valued Clubhouse at $1 billion not even one year into its existence. That’s pretty wild if you think about it!
Sounds Great! How Do I Join?
Not so fast! Joining Clubhouse is currently by invitation only. And while this can come from an existing member, there are only a small group of about two million users.
Early invitations were sent out to celebrities and influencers. Therefore, the exclusivity of the membership has made the app all the more desirable. Currently, Clubhouse only works with iOS.
As a result, you will need an Apple device to use it. Other than that, you’ll just need to wait for an invitation to join this exclusive club; until they’re able to make the app more widely available.
Demand for the exclusive membership has even caused a market to develop where existing members are selling their accounts on Craigslist, Reddit, and eBay for upwards of $100. While the site has yet to officially comment on selling accounts, it can only be thrilled with the high demand; which has no doubt contributed to the $1 billion valuation for a Clubhouse stock.
Where Have I Heard About This?
Clubhouse has developed a cult following throughout the pandemic as the high demand for membership has created buzz around social media. But another interesting figure has recently brought Clubhouse to the mainstream conversation: Tesla CEO Elon Musk.
In an impromptu conversation with Robinhood CEO Vlad Tenev, people gathered into the clubhouse to listen. This display’s exactly what kind of potential this platform has. The conversation caused a heavy spike in user downloads; with over 1 million in the days following Musk’s appearance.
Other celebrities that have been known to utilize the platform to reach out to fans include rapper Drake, Oprah Winfrey, comedians Chris Rock, Kevin Hart, and Tiffany Haddish, Kanye West, and Ashton Kutcher. Basically, the who’s who of social media and Hollywood influencers.
While it remains unclear as to what capacity these artists can use Clubhouse for, it does open the door to things like concerts, performances, and intimate fan gatherings that could even be used to monetize the app. Which would do great for a Clubhouse stock.
Is Clubhouse Publicly Traded?
If you’re looking for a Clubhouse stock, you might be confused to see the ticker $CMGR. There’s another Clubhouse, and it IS traded on the stock exchange. It’s a venture capital firm. As opposed to this new social media platform. So while you might not be able to trade stock for the app, you can trade $CMGR venture capital firm.
I Haven’t Been Invited, Are There Other Sites Like Clubhouse?
Trust me, you’re not alone if you haven’t been invited. It seems as though for now at least, Clubhouse is set on continuing its exclusivity as it works to expand its services. Evidently, Clubhouse only has ten staff members right now but should be looking to rapidly expand.
Especially with all of the investment capital it has raised. Now we wait for a Clubhouse stock. Let’s take a look at a few alternatives until you finally get that Clubhouse invite!
Discord: We’ve talked about Discord before and even have our own Discord channel up and running (check out our site for details). Discord provides users with an incredibly diverse amount of chat rooms to join, Q\As well as providing rooms with voice chat functionality where users can listen to the chat room moderator or anyone else designated to lead. They’ve gained popularity in investing circles so come check out our Discord channel for the latest in investing news!
Spoon: Perhaps one you haven’t really heard of, Spoon leans more towards the performance and content creation space. Musicians and other artists can utilize Spoon for live performances or testing out new material. The Spoon platform allows listeners to pay donations to the artists who are providing the live performances.
Twitter: Really? Twitter? Well not exactly. Twitter released a beta in December of 2020 where users can join into a voice only room. People can connect with their followers. Wait, this sounds familiar, doesn’t it? Usually, it’s Facebook that copies other apps. But this time it seems as though Twitter is after the Clubhouse platform. Twitter will launch the service, called Twitter Audio Spaces at some point in 2021. Judging from Twitter’s success, or lack thereof, with its Fleets function, don’t expect Audio Spaces to automatically replace Clubhouse.
What Are the Issues With Clubhouse?
While the Clubhouse platform is still relatively new, there has already been criticism of how much control users can have in the clubhouses. One controversial aspect of the Elon Musk and Vlad Tenev conversation was that Clubhouse banned certain reporters from being able to listen in.
While CEO Paul Davison did comment that event hosts have full control over who is and who isn’t allowed to listen, there does seem to be an exclusivity to the app that so far. The media is not particularly fond of this. It may also have something to do with the media themselves being banned from listening. However, it could still pose some problems in the future.
Clubhouse says they don’t allow racism, sexism, hate speech, and abuse. But there have already been numerous complaints about inappropriate behavior in clubhouse rooms. The subject is especially sensitive right now after other platforms like Discord, Reddit, and Telegram have all been infiltrated by extremist groups and terrorists.
Clubhouse Stock Price
While you can’t buy stock for the Clubhouse app, you can for the venture capital firm with the same name. In fact, their stock $CMGR has taken off in recent days. Could be the affect of people finding out about this new exclusive social media app. If you’re not big into researching, you may think you’re buying Clubhouse stock for the app.
Let’s Monetize This Baby!
Clubhouse has already played with the idea of charging for virtual tickets. Or even a premium subscription model that would allow users to have access to special performances or conversations like the one with Elon Musk. Subscription based social media platforms are always tricky.
Especially with other platforms like Twitter and Discord offering its services for free. If Clubhouse stock was to go public, a recurring subscription revenue model would drastically increase their margins and provide a nice revenue cushion.
Other possibilities are to allow donations or tips like Spoon does. Or perhaps individual subscriptions to specific hosts or rooms. Judging by the demand for membership though, it doesn’t seem like a few dollars per month or an annual subscription would dissuade too many people from signing up for Clubhouse.
Clubhouse Stock Conclusion
Clubhouse stock isn’t available right now on the public markets and as it’s still less than a year old. In fact. it doesn’t seem to have plans to offer a Clubhouse stock anytime soon. The valuation of the company has already valued Clubhouse at $1 billion after only being in operation for about nine months. Needless to say we are waiting for stock options after an IPO!
Investors should be excited about this; especially with big names like Elon Musk, Kanye West, and Oprah Winfrey utilizing the platform to connect with fans and other celebrities.
The demand for membership has been one of the driving forces behind Clubhouse’s popularity as the exclusive nature of the platform has made it extra desirable. If Clubhouse were to add in a recurring subscription-based model, we could be looking at a revenue monster in the making.
Investors who are keen to get into the social media platform should keep their eyes and ears open to see if it ever does announce an IPO to go public. For now, with only ten employees and just over 2 million users, Clubhouse has a lot of growth to do before it ever considers hitting the public market.