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Joyy, Inc. (JOYY)
:JOYY
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JOYY (JOYY) AI Stock Analysis

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JOYY

JOYY

(NASDAQ:JOYY)

Rating:59Neutral
Price Target:
$61.00
▼(-1.68% 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
Growth Drivers
Solid ads could become a new growth driver primarily driven by 3P ads business.
Market Position
Key peers of YY are already trading above net cash value, which provides potential re-rating opportunities for YY.
Valuation
An annualized shareholder return yield of approximately 11% suggests that YY is undervalued.
Negative Factors
Market Capitalization
The market capitalization is still below the net cash position, suggesting a potentially undervalued stock.

JOYY (JOYY) vs. SPDR S&P 500 ETF (SPY)

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
55
Neutral
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.
Balance Sheet
72
Positive
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.
Cash Flow
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.24B2.27B2.41B2.62B2.03B
Gross Profit806.20M813.03M852.13M837.90M569.60M
EBITDA167.63M422.42M158.71M119.81M292.59M
Net Income-146.24M301.82M600.00M-103.33M
Balance Sheet
Total Assets7.52B8.48B9.07B9.12B8.08B
Cash, Cash Equivalents and Short-Term Investments1.81B3.69B3.94B4.39B3.55B
Total Debt31.04M488.53M907.58M940.85M913.05M
Total Liabilities2.76B3.19B3.57B3.49B1.78B
Stockholders Equity4.71B5.16B5.18B5.53B6.23B
Cash Flow
Free Cash Flow224.16M213.57M247.28M25.54M362.27M
Operating Cash Flow308.66M295.58M316.49M210.42M524.10M
Investing Cash Flow-210.25M420.37M-510.28M789.59M828.82M
Financing Cash Flow-707.83M-841.75M-321.91M-723.54M

JOYY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.04
Price Trends
50DMA
52.18
Positive
100DMA
47.92
Positive
200DMA
44.41
Positive
Market Momentum
MACD
1.99
Negative
RSI
78.57
Negative
STOCH
95.71
Negative
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 62.04 is above the 20-day moving average (MA) of 52.54, above the 50-day MA of 52.18, and above the 200-day MA of 44.41, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 78.57 is Negative, neither overbought nor oversold. The STOCH value of 95.71 is Negative, 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
$38.83B26.5814.07%0.73%10.66%84.89%
75
Outperform
$1.44B19.968.57%4.38%29.62%-19.65%
73
Outperform
$1.33B7.7712.39%-11.02%-5.17%
71
Outperform
$2.79B7.9810.77%7.11%1.49%14.94%
63
Neutral
$416.92M20.823.27%-22.16%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
59
Neutral
$3.19B-2.33%3.01%-6.82%-150.90%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JOYY
JOYY
62.04
28.73
86.25%
WB
Weibo
11.54
4.99
76.18%
MOMO
Hello Group
8.35
2.29
37.79%
OPRA
Opera
17.80
4.62
35.05%
TME
Tencent Music Entertainment Group
24.67
14.61
145.23%
ZH
Zhihu
4.72
1.51
47.04%
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.Date of analysis: Sep 03, 2025