Please ensure Javascript is enabled for purposes of website accessibility

Why JOYY Stock Rose Today

By Evan Niu, CFA - Aug 13, 2020 at 1:32PM

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 Chinese social media specialist reported second-quarter earnings.

What happened

Shares of JOYY (YY 4.69%) have risen today, up by 2% as of 12:45 p.m. EDT, after the company reported second-quarter earnings. The stock had gained as much as 12% in morning trading.

So what

Revenue in the second quarter jumped 36% to 5.8 billion yuan ($826.6 million), which resulted in adjusted net income of 493.6 million yuan ($69.9 million), or 5.57 yuan ($0.79) per share. Analysts had been looking for $729.9 million in sales and adjusted earnings per share of $0.72. Global average mobile monthly active users (MAUs) grew 21% to 457.1 million, and total paying users declined modestly by 2.2% to 4.1 million due to impacts from the COVID-19 pandemic.

Green stock chart going up

Image source: Getty Images.

"During the second quarter of 2020, we maintained our focus on empowering our live streaming and short-form video dual-growth engine as we continued to upgrade our platforms, localize our operations, and create joyful experiences for people around the world," CEO David Xueling Li said in a statement. "To help people cope with the difficulties of COVID-19, we leveraged Bigo Live and our extensive global coverage to launch a series of online charity events, including a 24-hour non-stop globe charity concert, to enhance Bigo Live's brand recognition in various markets and fuel the platform's robust operating performance."

Now what

The Chinese social media tech company is in the process of selling 30 million shares of Huya to Tencent for $810 million. Due to a previous sale of Huya shares to Tencent that occurred during Q2, JOYY has now deconsolidated Huya's results as of last quarter.

In terms of guidance, JOYY is forecasting third-quarter revenue of 5.85 billion yuan to 6 billion yuan ($842.3 million to $863.9 million), which excludes the revenue contribution from Huya.

Evan Niu, CFA owns shares of Tencent Holdings. The Motley Fool owns shares of and recommends Tencent Holdings. The Motley Fool recommends HUYA Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

YY Stock Quote
$27.45 (4.69%) $1.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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