Please ensure Javascript is enabled for purposes of website accessibility

Why YY Stock Jumped Tuesday

By Daniel Sparks – Updated Apr 11, 2019 at 11:34AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The streaming social media platform's strong growth has investors upbeat.

What happened

China-based streaming social media platform YY (YY -1.63%) saw its stock jump on Tuesday, rising as much as 16.3%. As of 10:52 a.m. EST, however, the stock was up 13.1%.

The stock's gain follows YY's fourth-quarter earnings report, which included better-than-expected fourth-quarter results.

A chart showing a stock price rising

Image source: Getty Images.

So what

YY reported fourth-quarter revenue of 4.64 billion renminbi, about $675 million. This was up 28% from the year-ago quarter. Non-GAAP (generally accepted accounting principles) earnings per share for the period was $1.87, down from $2.27 in the year-ago quarter. 

On average, analysts were expecting revenue of $667 million and non-GAAP EPS of $1.77. 

The company's strong top-line growth was driven by an 18.1% year-over-year increase in mobile live streaming monthly active users and a 36.6% year-over-year increase in live streaming paying users.

Check out the latest earnings call transcript for YY.

Now what

Looking ahead, YY said it expects first-quarter revenue to rise 23.4% to 28% year over year when the impact of its just-closed acquisition of live streaming platform Bigo is excluded. In addition, YY CEO David Xueling Li said in the company's fourth-quarter earnings release that the company will continue executing its "globalization strategy as a potential driver for our long-term growth going forward."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.