One stock that has been racing up the chart and drawing in new interest over the past two months is Clubhouse Media Group Inc (OTCMKTS:CMGR), a rapidly growing influencer-based media and marketing firm with a global network of professionally run content houses and well over 100 million followers across major social media platforms.
CMGR’s growth in influencer scale over the past several months has been dramatic and suggests the company may be heading for true industry dominance in the social media influencer-based marketing space. However, it doesn’t seem as though that is the limit of this vision.
Based on recent events, it appears the company is angling for a multifaceted scope of dominance in its market space, by piling up market share in followers, by seeking out and acquiring disruptive solutions that further advance that dominance, and likely by nailing down new contracts with established celebrities given its emerging dominant position in the space.
Uh Oh, It’s Magic!
Clubhouse Media Group Inc (OTCMKTS:CMGR) most recently announced its acquisition of Magiclytics, the world’s first Revenue Prediction Software platform for influencer-based marketing.
Wilfred Man, founder and CEO of Magiclytics, remarked, “Our AI engine has processed billions of social, demographic and financial data points in order to optimize virtually any influencer campaign. Simply put, we give brands meaningful insight into the ROI they can expect from an influencer before they part with a single penny.”
According to the company’s release, Magiclytics leverages its massive database and leading-edge proprietary AI-driven predictive analytics technology to project the actual return, in sales, from the pairing of a specific product with a specific influencer or group of influencers. Historical data maintained by Magiclytics demonstrates the accuracy of its technology.
“This is the killer app in our marketplace,” commented Amir Ben Yohanan, CEO of Clubhouse Media. “We believe reliable predictive analytics can help Clubhouse Media attract bigger and better deals with top global brands. In addition, Magiclytics represents another income stream as a service to outside brands and influencers on a fee basis. It will also give us an analytic foundation to evaluate brand development projects and determine how we can best leverage and monetize our top in-house influencer talent.”
The Magiclytics acquisition is a disruptive addition to the Clubhouse mix, providing the company with a frontier technology advantage over its peers – to go along with its brute-force scale advantage.
Clubhouse Media Group Inc (OTCMKTS:CMGR) was recently snagged after some financial media outlets reported that the stock’s late January ramp might be a case of mistaken identity (with the Clubhouse app, which is expected to potentially IPO before long, and was recently touted by Elon Musk).
However, after that would-be “revelation” and its ensuing shakeout, shares of CMGR have ramped right back up, suggesting this stock is its own special story in the market, and that its 500% rip this year is entirely justified on its own merits.
In other words, CMGR appears set to potentially take a dominant global leadership position in the massive and rapidly growing influencer-based marketing space, and that story has nothing to do with an unrelated audio app.
Hence the powerful momentum in CMGR shares.
Talent Gravity Well
There is also growing evidence that Clubhouse has the potential to turn the social media influencer-based marketing game into a winner-take-all affair.
The idea is a simple one: the firm with the biggest following will cut the most lucrative deals with advertisers. And the firm with the most lucrative deals with the top advertisers will naturally attract the top-shelf talent, including big celebrities with already-established brands.
At a certain point, the whole game will pass an event horizon where the feedback loop becomes dominant and, without the surprise interjection of some outside force, will become a fait accompli.
Clubhouse Media Group Inc (OTCMKTS:CMGR) has put this on display recently in several deals – especially its recent announcement involving possibly the most striking story to hit the world of professional motorsports this year: Lindsay Brewer, an emerging star female race car driver with more than 2 million social media followers, recently signed on with Skip Barber Racing, a legendary motorsports brand, to hone her skills and participate in the 2021 Skip Barber Race Series, as well as the SRO World Challenge, which is expected to draw over 100 million sets of eyeballs.
And, if you’ve seen Lindsay, you know it’s a safe bet that most of those eyeballs will be focused on her as she whizzes around the track. And when they are, they won’t be able to miss the Clubhouse Media logo on her helmet and car.
Naturally, this is just one deal, and many others are no doubt in the works. CMGR may be a gravity well, and market participants may benefit from paying close attention.
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