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JOYY (JOYY)
NASDAQ:JOYY
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JOYY
(NASDAQ:JOYY)
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Rating:59Neutral
Price Target:
$61.00
▼(-0.78% Downside)
JOYY's overall stock score is driven by a strong balance sheet and positive earnings call sentiment, indicating potential for future growth. However, declining financial performance and negative valuation metrics weigh down the score. The technical analysis suggests bullish momentum, but the overvaluation risk remains a concern.
Positive Factors
Ad Tech Business Expansion
The significant growth in the advertising segment indicates a successful diversification strategy, enhancing revenue stability and reducing reliance on livestreaming.
Financial Resilience
A strong cash position provides JOYY with the flexibility to invest in growth opportunities, weather economic downturns, and manage operational challenges effectively.
Livestreaming Business Stability
Stability in livestreaming revenue suggests a steady user base and engagement, supporting long-term revenue generation and market position.
Negative Factors
Declining Revenue Trend
The persistent decline in revenue highlights challenges in maintaining market share and competitiveness, necessitating strategic adjustments to reverse the trend.
Profitability Challenges
Negative profit margins indicate inefficiencies and cost management issues, potentially impacting long-term financial health and investor confidence.
Cash Flow Concerns
Limited cash flow generation raises concerns about liquidity and the ability to fund operations and growth initiatives without external financing.
JOYY (JOYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.11B
Dividend Yield4.58%
Average Volume (3M)533.51K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth-7.07%
EPS Growth-150.40%
CountryUS
Employees5,815
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)1.44
Shares Outstanding35,037,445
10 Day Avg. Volume546,329
30 Day Avg. Volume533,514
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.50
Price to Sales (P/S)1.06
P/FCF Ratio10.60
Enterprise Value/Market Cap0.37
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda5.04
Forecast
1Y Price Target
$60.00Price Target Upside-2.41% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering2
JOYY Business Overview & Revenue Model
Company DescriptionJOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as showcase talents, socialize, and connect with other users worldwide; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls and other communication tools, such as group calls, document sharing, etc.. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.
How the Company Makes MoneyJOYY generates revenue primarily through a virtual gifting model, where users purchase virtual items to send to their favorite streamers during live broadcasts. This model incentivizes content creators to deliver engaging performances, driving user engagement and increasing spending. Additionally, JOYY earns revenue from advertising by leveraging its large user base to attract brands seeking to promote their products. The company also explores partnerships with other media and entertainment firms to enhance its service offerings, further diversifying its revenue streams. Furthermore, JOYY has expanded into e-commerce and online gaming, creating additional avenues for monetization.
JOYY Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with stable growth in key areas like the ad tech business and livestreaming revenue. Despite challenges such as past app removals, the company's financial resilience and strategic expansion into ad tech indicate robust future growth potential.Q2-2025 Updates
Positive Updates
Revenue Growth
JOYY Inc. recorded total revenue of $508 million, representing 2.7% growth quarter-over-quarter (Q-o-Q). The non-GAAP operating profit reached $38 million, with a year-over-year (Y-o-Y) growth of 27.9%. Non-GAAP EBITDA grew 25.7% Y-o-Y to $48 million.
Ad Tech Business Expansion
The advertising business achieved robust growth, with non-livestreaming revenue growing 25.6% Y-o-Y and contributing 26.1% to total revenues. BIGO Ads achieved $87 million in ad revenue, representing 29% Y-o-Y growth and 9% Q-o-Q growth.
Financial Resilience
As of June 30, JOYY Inc. maintained $3.3 billion in net cash, highlighting strong financial resilience. Operating cash flow reached $58 million.
Livestreaming Business Stability
Livestreaming revenue reached $375 million with BIGO livestreaming revenue at $355 million, both stabilizing Q-o-Q. BIGO LIVE's user numbers grew 2.3% Q-o-Q, and the premium paying users increased by 13% Q-o-Q.
Global User Growth
The global average mobile monthly active users (MAUs) grew sequentially to 263 million. The MAUs of IM increased by 3 million, with an average daily user time spent up 12.8% Y-o-Y.
Negative Updates
Temporary App Removals Impact
Temporary app removals in late 2024 prompted JOYY to enhance community safety infrastructure, indicating previous challenges with app availability.
Potential Increase in Operating Losses
In the All Other segment, due to seasonal fluctuations, non-GAAP operating losses might slightly widen in Q3 compared to Q2.
Company Guidance
During the second quarter of 2025, JOYY Inc. reported total revenue of $508 million, reflecting a 2.7% quarter-over-quarter increase, while the non-GAAP operating profit grew by 27.9% year-over-year to $38 million. The company's non-GAAP EBITDA reached $48 million, marking a 25.7% year-over-year growth. Livestreaming revenue contributed $375 million, showing a 1.1% quarter-over-quarter growth, and BIGO livestreaming revenue was $355 million. Non-livestreaming revenue, which encompasses the advertising business, saw a significant 25.6% year-over-year growth and constituted 26.1% of the total revenues. The advertising segment, BIGO Ads, achieved $87 million in ad revenue, representing a 29% year-over-year growth and a 9% quarter-over-quarter increase. Operating cash flow was robust at $58 million, and the company maintained a strong financial position with $3.3 billion in net cash as of June 30, 2025. The management also highlighted key strategic pillars for growth, including high-quality operations, sustainable growth, AI-driven innovation, and organizational vitality. Looking forward, JOYY anticipates continued growth in both livestreaming and advertising revenues, with a projected third-quarter revenue range of $525 million to $539 million.JOYY Financial Statement Overview
Summary
JOYY faces challenges with declining revenues and profitability, reflected in negative net income and EBIT margins. However, the company maintains a strong balance sheet with low debt levels. Cash flow issues need attention to ensure liquidity and operational efficiency.Income Statement
JOYY has shown a declining revenue trend with a decrease from $2.62 billion in 2021 to $2.24 billion in 2024. The gross profit margin decreased slightly from 32% in 2023 to 36% in 2024, indicating a drop in efficiency. The net profit margin turned negative in 2024, reflecting challenges in controlling costs. EBIT and EBITDA margins deteriorated, with EBIT turning negative in 2024, signaling operational inefficiencies.55
Neutral
Balance Sheet
The balance sheet remains strong with a high equity ratio of 62.7% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio is very low, at 0.01, showcasing prudent debt management. However, the return on equity has turned negative due to the net loss, signaling a need for improved profitability.72
Positive
Cash Flow
The cash flow statement reflects challenges with zero free cash flow and operating cash flow in 2024, indicating potential liquidity concerns. The free cash flow to net income ratio is non-calculable due to negative net income, and the operating cash flow to net income ratio is not available, highlighting potential cash management issues.45
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.24B | 2.27B | 2.41B | 2.62B | 2.03B |
| Gross Profit | 806.20M | 813.03M | 852.13M | 837.90M | 569.60M |
| EBITDA | 167.63M | 422.42M | 158.71M | 119.81M | 292.59M |
| Net Income | -146.24M | 301.82M | 600.00M | -103.33M | ― |
Balance Sheet | |||||
| Total Assets | 7.52B | 8.48B | 9.07B | 9.12B | 8.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.81B | 3.69B | 3.94B | 4.39B | 3.55B |
| Total Debt | 31.04M | 488.53M | 907.58M | 940.85M | 913.05M |
| Total Liabilities | 2.76B | 3.19B | 3.57B | 3.49B | 1.78B |
| Stockholders Equity | 4.71B | 5.16B | 5.18B | 5.53B | 6.23B |
Cash Flow | |||||
| Free Cash Flow | 224.16M | 213.57M | 247.28M | 25.54M | 362.27M |
| Operating Cash Flow | 308.66M | 295.58M | 316.49M | 210.42M | 524.10M |
| Investing Cash Flow | -210.25M | 420.37M | -510.28M | 789.59M | 828.82M |
| Financing Cash Flow | -707.83M | -841.75M | -321.91M | -723.54M | ― |
JOYY Technical Analysis
Positive
61.48
Price Trends
54.29
Positive
50.38
Positive
45.59
Positive
Market Momentum
2.29
Positive
63.82
Neutral
16.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOYY, the sentiment is Positive. The current price of 61.48 is above the 20-day moving average (MA) of 59.90, above the 50-day MA of 54.29, and above the 200-day MA of 45.59, indicating a bullish trend. The MACD of 2.29 indicates Positive momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JOYY.
JOYY Risk Analysis
JOYY disclosed 91 risk factors in its most recent earnings report. JOYY reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JOYY Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 32.69B | 25.20 | 9.79% | 0.76% | 10.66% | 84.89% | |
75 Outperform | 1.72B | 23.41 | 8.43% | 4.07% | 29.62% | -19.65% | |
74 Outperform | 3.03B | 8.51 | 8.64% | 6.55% | 1.21% | 14.72% | |
74 Outperform | 1.21B | 11.53 | 9.09% | ― | -7.33% | -34.16% | |
63 Neutral | 445.24M | 22.45 | -4.15% | ― | -22.16% | ― | |
59 Neutral | $3.11B | ― | -2.32% | 4.58% | -7.07% | -150.40% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
JOYY
JOYY
61.48
25.88
72.70%
WB
Weibo
12.52
3.62
40.67%
MOMO
Hello Group
7.58
0.55
7.82%
OPRA
Opera
19.18
4.79
33.29%
TME
Tencent Music Entertainment Group
23.70
11.57
95.38%
ZH
Zhihu
5.22
1.32
33.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.