Shares of Agora Inc. (API) surged 5% on Tuesday intraday trading, outperforming the broader market. The stock's rally came amid news that Chinese tech giant Baidu has acquired the YY Live video streaming business from Joyy Inc. for a hefty $2.1 billion.

While Agora is not directly involved in the transaction, investors appear to be interpreting Baidu's acquisition as a positive signal for the live streaming industry as a whole. The sizeable deal value underscores the growth potential and strategic importance of live streaming platforms.

As a leading provider of real-time engagement solutions, including voice, video, and live interactive streaming services, Agora stands to benefit from increased investor optimism and interest in the sector. The company's platform enables developers to embed real-time audio/video capabilities into their applications, catering to a range of use cases such as social media, gaming, and enterprise collaboration.