In today's video I look at fundamentals, valuation metrics, and recent news for Huya (HUYA 0.98%) and Douyu (DOYU 2.95%). Below I share a few highlights from the video.
- Huya and Douyu are live streaming platforms in China that have announced a merger agreement. On July 12, 2021, both companies released statements reporting the termination of the contract after China's market regulators prohibited the merger.
- Huya and Douyu show strong fundamentals in their trailing 12 months. Both companies reported positive cash flow from operations and have profitable earnings, substantial cash and short-term investments, and no debt.
- The forward-price-to-sales ratio for Huya has fallen dramatically and is at levels seen during the first half of 2020. The correction could be providing long-term investors with a buying opportunity.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of July 12, 2021. The video was published on July 12, 2021.
