JOYY (YY) AI Stock Analysis

• Market Cap: $2.19B
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.72
• Revenue Growth: -1.33%
• EPS Growth: -148.56%
• Country: US
• Employees: 7,449
• Sector: Communication Services
• Sector Strength: 71
• Industry: Internet Content & Information
• EPS (TTM): -2.73
• Shares Outstanding: 35,733,160
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.13
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $61.03
• Price Target Upside: 44.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: ―

JOYY's overall score is impacted by declining financial performance, with notable issues in revenue and profitability. However, the company has a strong balance sheet with low leverage. Technical indicators suggest bearish momentum, and valuation concerns persist due to the negative P/E ratio. The earnings call provided a positive outlook on non-GAAP profits and strategic growth areas, offering some optimism amidst the challenges.

Positive Factors

Acquisition

The finalized sale of YY Live to Baidu for $2.1 billion in cash has removed uncertainty and mitigated downside risks to the company's net cash position.

Capital Returns

Management is expected to increase capital returns to shareholders, potentially including cash dividends in addition to its ongoing buyback.

Stock Upgrade

YY stock has been upgraded to Buy with a set price target of $63 following the clearance of the overhang from the YY Live sale.

Negative Factors

Deal Uncertainties

Uncertainties related to the Baidu & YY Live deal remain, and any updates could ease market concerns.

Regulatory Environment

Domestic audio streaming is under transition with further business adjustment amid a tightened regulatory environment.

JOYY Business Overview & Revenue Model

Company Description

JOYY 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 Money

JOYY Inc. generates revenue primarily through its live streaming services. The company employs a virtual gifting model, where users purchase virtual items and gifts to send to content creators during live streams. These purchases are made using in-app currencies, which are bought with real money. JOYY also earns revenue from advertising on its platforms, as businesses pay to reach the company's broad and engaged user base. In addition to these revenue streams, JOYY may engage in strategic partnerships and collaborations that enhance its service offerings and expand its market presence, further contributing to its financial performance.

JOYY Financial Statement Overview

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Balance Sheet

Cash Flow

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Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
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JOYY Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOMO	79 Outperform	$1.35B	7.92	12.39%	―	-11.02%	-5.17%
TME	72 Outperform	$30.08B	24.87	14.37%	0.83%	4.59%	83.27%
BILI	69 Neutral	$9.64B	―	-4.29%	―	21.11%	87.93%
HUYA	66 Neutral	$813.58M	―	-1.62%	30.20%	-7.15%	22.29%
Sector *	62 Neutral	$41.98B	-1.92	-12.06%	3.47%	2.10%	-71.01%
DOYU	55 Neutral	$275.53M	―	-6.76%	―	-18.43%	-349.12%
YY	52 Neutral	$2.19B	14.64	-2.96%	―	-1.33%	-148.56%