5 Beaten-Down Asian Stocks to Buy Today

2. Agora, Inc. (NASDAQ:API)

Number of Hedge Fund Holders: 17

YTD Share Price Decline as of June 9: 56.11%

Agora, Inc. (NASDAQ:API) is a Chinese company that provides real-time engagement platform-as-a-service (RTE-PaaS) in China, the United States, and internationally. The company offers software tools to embed real-time video, voice, and messaging functionalities into applications. The stock has tumbled over 56% year-to-date as of June 9. 

Nomura analyst Bing Duan on May 16 upgraded Agora, Inc. (NASDAQ:API) to Buy from Neutral with a price target of $10, down from $11. While the analyst moderately slashed FY22-24 revenue forecasts to account for a slower-than-expected recovery, he lifted earnings estimates on improved loss margins and believes “demand and policy shock” is already priced in the shares. The company is executing its $200 million repurchase program and the upgraded rating represents Agora, Inc. (NASDAQ:API)’s stabilizing operations, the analyst added.

According to Insider Monkey’s Q1 data, 17 hedge funds were long Agora, Inc. (NASDAQ:API), up from 12 funds in the prior quarter. Dawid Krige’s Cederberg Capital is the biggest position holder in the company, with 2.19 million shares worth $21.7 million. 

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.”