JOYY Inc. (JOYY): A Bull Case Theory

We came across a bullish thesis on JOYY Inc. on Triple S Special Situations Investing’s Substack by TripleS Special Situations. In this article, we will summarize the bulls’ thesis on JOYY. JOYY Inc.'s share was trading at $62.13 as of February 5th. JOYY’s trailing and forward P/E were 8.92 and 9.78 respectively according to Yahoo Finance.

JOYY is a profitable Chinese company operating livestreaming platforms and advertising technology, with a $3.6 billion market cap and nearly $2 billion in annual revenue. Remarkably, the company holds $3.3 billion in net cash as of Q3 2025, providing a substantial buffer and flexibility to return capital to shareholders through buybacks—$89 million scheduled in 2025 under a $900 million authorization—or pursue other value-accretive initiatives.

Despite this strong balance sheet and asset-light, high-margin business model, the market continues to undervalue JOYY due to lingering concerns over China’s regulatory environment, treating the company as if it were a high-risk or impaired asset. This persistent mispricing has created a significant disconnect between the company’s fundamentals and its stock price, which, if traded under a more typical global valuation multiple, could approach $100 per share.

With its robust cash position, consistent profitability, and low operational risk relative to its peers, JOYY represents an overlooked investment opportunity where the downside is limited, and the potential upside remains substantial. Investors who look past the regulatory noise are likely to recognize the stock’s intrinsic value, driven by both its operational cash generation and the optionality offered by its net cash reserve, which can be deployed to enhance shareholder returns. Overall, JOYY stands out as a low-risk, high-cash, underappreciated business with a clear path for capital deployment and potential rerating once market sentiment aligns with its fundamentals.

Previously, we covered a bullish thesis on Meta Platforms, Inc. (META) by LongYield in May 2025, which highlighted the company’s strong AI-driven ad growth, robust operating margins, and strategic investments in generative AI and future computing interfaces. META’s stock price has appreciated by approximately 17.12% since our coverage. TripleS Special Situations shares a similar perspective but emphasizes JOYY’s undervaluation due to its massive net cash, regulatory mispricing, and high-margin livestreaming business in China.

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 risk and potential of JOYY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JOYY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.