In today's video, I talk about why Huya (HUYA 2.30%) is a buying opportunity.
Huya is one of the leading game live-streaming platforms in China. Huya recently its earnings earlier this week and saw its stock drop roughly 9% by the end of the day.
Here are four reasons why now is a good buying opportunity.
- Most recent earnings showed strong growth in numerous metrics. Q4 revenue grew 21.2% YoY, average MAUs grew 18.8 YoY, and the total number of paying users grew 17.6%
- Huya reported a strong balance sheet of cash and cash equivalents, short-term deposits, and short-term investments of RMB10,474.9 million (US$1.6 billion) and no debt. To put in perspective how substantial its cash is, Huya currently has a market cap of about $5.2B.
- Huya has a strong partnership with Tencent and is expanding its presence into other Southern East Asian and Middle Eastern countries.
- In light of recent news about RLX Technology and the Chinese government's ongoing efforts to tighten regulations in specific markets, many investors are skeptical about investing in Chinese stocks, which might be providing a great buying opportunity.