JOYY

YY · NASDAQ

$83.35−$0.07 (−0.08%)TodayMarket closed · Oct 23, 4:00 PM ET

Prev close $83.42

YY analyst rating

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The case for and against

Updated Nov 30, 2024

Bull case

JOYY Inc. demonstrated a positive financial trajectory with a 5.1% increase in paying users and a 2.2% rise in average revenue per paying user (ARPPU) quarter over quarter, reflecting effective monetization strategies. The company reported a Non-GAAP EPADS of $1.22, significantly outpacing expectations, driven by improved operational efficiencies and cost management, leading to raised earnings estimates for FY23/FY24. Additionally, JOYY's segment BIGO showed early signs of stabilization with a year-over-year revenue increase of 2.2%, bolstering the outlook for future growth amid strategic streamlining of non-core businesses to enhance profitability.

Bear case

JOYY Inc. has provided 3Q24 revenue guidance that indicates a potential year-over-year decline, which is a concerning sign as it falls short of consensus expectations. Furthermore, the guidance for 4Q23 suggests a more pronounced decrease, with projections showing a decline of 4% to 9%, signaling ongoing challenges in revenue generation and market conditions. In response to these factors, the company has adjusted its fiscal year 2024 and 2025 revenue estimates downward, reflecting caution and uncertainty around its revenue growth trajectory amidst macro and geopolitical instability.

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