JOYY Inc. (JOYY): A Bull Case Theory

We came across a bullish thesis on JOYY Inc. on Stocks subreddit by afwaefsegs9397. In this article, we will summarize the bulls’ thesis on JOYY. JOYY Inc.'s share was trading at $63.19 as ] of December 17th. JOYY’s trailing and forward P/E were 8.92 and 9.78 respectively according to Yahoo Finance.

JOYY Inc., together with its subsidiaries, engages in the provision of social product matrix and communication technology. JOYY is a cash-rich technology company trading near net cash, with capital return emerging as a central pillar of the investment thesis. The company is actively returning capital through both dividends and share repurchases, offering investors tangible downside protection while waiting for valuation normalization.

Management has guided to approximately $900 million in cumulative dividends and buybacks between 2025 and 2027, and the current $0.97 quarterly dividend implies a yield of roughly 6%, underscoring the strength of the balance sheet and cash generation profile. With $3.32 per share in cash as of Q3, leverage and liquidity risks are minimal, reinforcing the asymmetric setup.

From a catalyst perspective, near-term sentiment could be driven by improving advertising growth, increased third-party demand, or further iOS monetization expansion. The disconnect between JOYY’s improving fundamentals and muted share price action is notable, particularly given the stock’s demonstrated ability to make sharp multi-day moves when volume and volatility return. While JOYY’s core live-streaming business remains mature, recent earnings highlighted accelerating momentum in its AdTech and SaaS initiatives, which are increasingly central to the equity story.

Bigo Live continues to anchor the business, generating $388 million of live-streaming revenue in Q3, or over 70% of total revenue, primarily through virtual gifting. At the same time, BIGO Ads has emerged as a meaningful growth engine, with ad revenue up 29% year-over-year to $112.5 million and BIGO Ads revenue rising 33% year-over-year to $103.9 million, including nearly 20% sequential growth. Investments in AI-driven ad models that forecast user value over a seven-day horizon are improving advertiser ROI and attracting higher-quality demand. Trading at roughly 12.5x forward earnings, sustained 20%+ growth in BIGO Ads could drive a meaningful rerating alongside ongoing capital returns.

Previously we covered a bullish thesis on Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted AI-driven ad monetization, margin expansion, and long-term generative AI optionality. The company's stock price has appreciated approximately by 13.5% since our coverage. This is because the thesis played out through strong earnings execution. The thesis still stands as AI-driven monetization remains intact. afwaefsegs9397 shares a similar view but emphasizes capital return and valuation normalization over growth.

JOYY Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held JOYY at the end of the third quarter which was 22 in the previous quarter. While we acknowledge the potential of JOYY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.