Please ensure Javascript is enabled for purposes of website accessibility

Why JOYY Stock Was Climbing Today

By Jeremy Bowman – Aug 19, 2021 at 4:43PM

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

Shares of the Asian social media company were gaining on a better-than-expected earnings report.

What happened

Shares of JOYY (YY -2.62%), the Singapore-based social media company formerly known as YY, were moving higher today after the company turned in a strong second-quarter earnings report. 

As of 3:06 p.m. EDT, the stock was up 10.7%.

Two youngsters playing games on their smartphones while sitting on a couch.

Image source: Getty Images.

So what

JOYY said revenue in the quarter rose 39.7% to $661.7 million, which was ahead of expectations at $655.9 million. That growth came in spite of a crackdown by the Indian government on Chinese-owned apps, including Bigo Live, Likee, and Hago, which led to monthly active users (MAUs) declining by 26% to 307.5 million. MAU's outside of India rose in the quarter.

The company also made significant progress on the bottom line as its operating loss narrowed from the year-ago quarter, and it posted an adjusted loss per share of $0.01, which compared to a per-share loss of $0.63 a year ago. 

CEO David Xueling Li said, "Despite the negative impact from local holidays in certain regions, we maintained the growth trajectory of our global business, and managed to achieve significant progress in further enriching our localized content offering in the second quarter."

Now what

The company is forecasting growth of 13.7% to 18.7% for the current quarter, though that guidance excludes the contribution of Huya and YY Live as the company has sold both of those businesses over the past year to Tencent and Baidu, respectively.

Investors seemed willing to overlook a possibly significant slowdown from the second quarter, as indicated by the guidance. Their position may be due to the break-even, bottom-line performance in Q2 and the stock's sharp fall this year. Even after today's gains, it's still down 43% year to date

Jeremy Bowman 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.

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
$27.11 (-2.62%) $0.73
Baidu Stock Quote
$93.36 (-3.75%) $-3.64
Tencent Holdings Stock Quote
Tencent Holdings
$34.58 (-4.71%) $-1.71

*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 11/27/2022.

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.