The Coronavirus Crisis Can’t Crush This Chinese Tech Stock
The novel coronavirus pandemic finally killed off the aging bull market, but Chinese tech companies that generate most of their revenue from live streaming platforms have remained surprisingly resilient. One such company is JOYY (NASDAQ: YY), the streaming video giant formerly known as YY.
According to its latest earnings report released Tuesday, JOYY's revenue rose 64% annually to 7.62 billion yuan ($1.09 billion) during the fourth quarter, beating estimates by $20 million. Its net income fell 82% to 173 million yuan ($25 million), or $0.27 per ADS -- which still beat estimates by $0.11. Its non-GAAP net income, which excludes certain one-time charges, dipped 29% to 601 million yuan ($86 million). Those declines were largely attributed to its acquisition and consolidation of Bigo.
JOYY's growth rate exceeded its prior forecast, and indicate it's well-insulated from the COVID-19 crisis. Let's see how its businesses are shielded from those headwinds, and why its stock remains undervalued relative to its long-term growth.
Source Fool.com
