Hanryu Holdings (NASDAQ: HRYU) stock is up 45% on the back of an announcement about Artificial Intelligence. Well, maybe AI will really boost their business? On the other hand it’s also possible to describe this a different way. They’re going to add a chatbot to their already extant talkbot on their website. This might not be worth the $100 million or so that has just been added to the market capitalisation. That’s a matter of opinion of course and the opinion will be hugely influenced by quite how we describe it.
As to what’s done at Hanryu: “Hanryu Holdings, Inc. operates FANTOO, an online social media platform that connects users worldwide that share similar interests. Its platform allows users to interact with other like-minded users to share their appreciation of various types of entertainment and cultures, create and monetize their content, enjoy other users content, engage in commerce, and experience a fandom community. The company was founded in 2018 and is based in Seoul, South Korea.“ OK, we can see the point here. Those S Korean boy (and girl) bands do have vast followings, managing the following is a major part of the monetary game. So, yes. OK.
The specific of this deal is: “Social media co Hanryu Holdings (NASDAQ:HRYU) Monday said it would incorporate Saltlux's AI-powered technology into its popular global fandom application, FANTOO. A KOSDAQ exchange-listed company, Saltlux currently holds a number of the most AI and big data-related patents in Korea. Under the deal, Hanryu will incorporate Saltlux AI-powered conversational virtual assistant to enhance user engagement with Talkbot, onto the FANTOO application.”
As we say, this could be the addition of AI to managing fan bases, could be merely an upgrade of the talkbot on the site.
Hanryu Holdings stock price from NASDAQ
Our read on this is that Hanryu is a very recent IPO. Quite what the usefully accurate valuation should be is as yet unknown. So, the HRYU stock price is febrile - this isn’t, as we all know, unusual with recent IPOs. So, when we add in some exciting news about some other stock market fashion - here, AI - then we get an outsized response. But it’s worth grasping that this is the confluence of two things, the newly minted IPO and the fashion. It’s not a hard headed calculation of the value of the deal itself.
As to where it will all settle out we’re simply going to have to wait and see. We’ve no opinion on the correct valuation of Hanryu Holdings to offer - just this observation that the recent rise, this 45%, is about mood swings, not analysis.
