JOYY (JOYY) AI Stock Analysis

• Market Cap: $3.03B
• Dividend Yield: 4.75%
• Average Volume (3M): 380.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -7.07%
• EPS Growth: -150.40%
• Country: US
• Employees: 5,815
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.44
• Shares Outstanding: 35,037,445
• 10 Day Avg. Volume: 298,981
• 30 Day Avg. Volume: 380,479
• PEG Ratio: 0.11
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 10.60
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.44
• Enterprise Value/Ebitda: 4.92
• 1Y Price Target: $60.00
• Price Target Upside: 1.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $61.00 ▲(3.02% Upside)

JOYY's overall stock score is driven by a strong balance sheet and positive earnings call sentiment, indicating potential for future growth. However, declining financial performance and negative valuation metrics weigh down the score. The technical analysis suggests bullish momentum, but the overvaluation risk remains a concern.

Positive Factors

Ad Tech Business Expansion

The significant growth in the advertising segment indicates a successful diversification strategy, enhancing revenue stability and reducing reliance on livestreaming.

Financial Resilience

A strong cash position provides JOYY with the flexibility to invest in growth opportunities, weather economic downturns, and manage operational challenges effectively.

Livestreaming Business Stability

Stability in livestreaming revenue suggests a steady user base and engagement, supporting long-term revenue generation and market position.

Negative Factors

Declining Revenue Trend

The persistent decline in revenue highlights challenges in maintaining market share and competitiveness, necessitating strategic adjustments to reverse the trend.

Profitability Challenges

Negative profit margins indicate inefficiencies and cost management issues, potentially impacting long-term financial health and investor confidence.

Cash Flow Concerns

Limited cash flow generation raises concerns about liquidity and the ability to fund operations and growth initiatives without external financing.

JOYY Business Overview & Revenue Model

Company Description

JOYY Inc. is a leading global social media platform based in China that focuses on live streaming and social networking. Operating primarily through its flagship app, YY, along with other services such as Bigo Live and Likee, JOYY enables users to connect, share, and engage through live broadcasts, short videos, and interactive social features. The company serves a diverse user base across various markets, creating a vibrant ecosystem for content creators and consumers alike.

How the Company Makes Money

JOYY generates revenue primarily through a virtual gifting model, where users purchase virtual items to send to their favorite streamers during live broadcasts. This model incentivizes content creators to deliver engaging performances, driving user engagement and increasing spending. Additionally, JOYY earns revenue from advertising by leveraging its large user base to attract brands seeking to promote their products. The company also explores partnerships with other media and entertainment firms to enhance its service offerings, further diversifying its revenue streams. Furthermore, JOYY has expanded into e-commerce and online gaming, creating additional avenues for monetization.

JOYY Financial Statement Overview

Summary

JOYY faces challenges with declining revenues and profitability, reflected in negative net income and EBIT margins. However, the company maintains a strong balance sheet with low debt levels. Cash flow issues need attention to ensure liquidity and operational efficiency.

Income Statement

JOYY has shown a declining revenue trend with a decrease from $2.62 billion in 2021 to $2.24 billion in 2024. The gross profit margin decreased slightly from 32% in 2023 to 36% in 2024, indicating a drop in efficiency. The net profit margin turned negative in 2024, reflecting challenges in controlling costs. EBIT and EBITDA margins deteriorated, with EBIT turning negative in 2024, signaling operational inefficiencies.

Balance Sheet

The balance sheet remains strong with a high equity ratio of 62.7% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio is very low, at 0.01, showcasing prudent debt management. However, the return on equity has turned negative due to the net loss, signaling a need for improved profitability.

Cash Flow

The cash flow statement reflects challenges with zero free cash flow and operating cash flow in 2024, indicating potential liquidity concerns. The free cash flow to net income ratio is non-calculable due to negative net income, and the operating cash flow to net income ratio is not available, highlighting potential cash management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.24B	2.27B	2.41B	2.62B	1.92B
Gross Profit	806.20M	813.03M	852.13M	837.90M	569.60M
EBITDA	167.63M	422.42M	801.67M	119.81M	292.59M
Net Income	-146.24M	301.82M	128.89M	-103.33M	1.37B
Balance Sheet
Total Assets	7.52B	8.48B	9.07B	9.12B	8.08B
Cash, Cash Equivalents and Short-Term Investments	1.81B	3.31B	3.94B	4.39B	3.55B
Total Debt	31.04M	488.53M	907.58M	940.85M	918.64M
Total Liabilities	2.76B	3.19B	3.57B	3.49B	1.78B
Stockholders Equity	4.71B	5.16B	5.18B	5.53B	6.23B
Cash Flow
Free Cash Flow	224.16M	213.57M	247.28M	25.54M	362.27M
Operating Cash Flow	308.66M	295.58M	316.49M	210.42M	524.10M
Investing Cash Flow	-210.25M	420.37M	-510.28M	789.59M	828.82M
Financing Cash Flow	-707.83M	-841.75M	-321.91M	-723.54M	-134.41M

JOYY Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOYY, the sentiment is Positive. The current price of 59.21 is above the 20-day moving average (MA) of 58.14, above the 50-day MA of 56.78, and above the 200-day MA of 47.37, indicating a bullish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 55.89 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JOYY.

JOYY Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	75 Outperform	$31.76B	24.62	14.07%	0.79%	10.66%	84.89%
OPRA	74 Outperform	$1.44B	20.04	8.57%	4.94%	29.62%	-19.65%
WB	70 Outperform	$2.75B	8.02	10.77%	7.30%	1.21%	14.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JOYY	59 Neutral	$3.03B	―	-2.32%	4.75%	-7.07%	-150.40%
ZH	53 Neutral	$358.20M	18.75	3.27%	―	-22.16%	―
MOMO	51 Neutral	$1.11B	10.48	7.65%	―	-7.33%	-34.16%

JOYY Corporate Events

JOYY Inc. Reports Q2 2025 Financial Results with Strategic Growth in Advertising

On August 27, 2025, JOYY Inc. announced its unaudited financial results for the second quarter of 2025, revealing a decrease in net revenues to $507.8 million from $565.1 million in the same period of 2024. Despite the revenue drop, the company reported an increase in operating income to $5.8 million and a rise in non-GAAP EBITDA to $48.2 million, indicating improved operational efficiency. The company also highlighted the growth of its non-livestreaming business, particularly in advertising, which saw significant year-over-year growth. The strategic focus on enhancing advertising algorithms and expanding traffic has positioned JOYY to strengthen its presence in the advertising technology industry, aiming to deliver long-term shareholder value.