JOYY Inc. (JOYY): A Bull Case Theory

Core Thesis - JOYY Inc. is viewed as an undervalued investment opportunity due to its strong financial position and operational model, despite market concerns regarding China's regulatory environment [3][4]. Financial Performance - JOYY has a market capitalization of $3.6 billion and nearly $2 billion in annual revenue, with a trailing P/E of 8.92 and a forward P/E of 9.78 [2][3]. - The company holds $3.3 billion in net cash as of Q3 2025, providing flexibility for capital returns and growth initiatives [2]. Market Valuation - The current stock price of JOYY is $62.13, but it is suggested that under a more typical global valuation multiple, the stock could approach $100 per share [3]. - The market continues to undervalue JOYY, treating it as a high-risk asset due to regulatory concerns, leading to a disconnect between its fundamentals and stock price [3][4]. Investment Opportunity - JOYY's asset-light, high-margin business model and robust cash position make it a low-risk investment with substantial upside potential [4]. - The company plans to return $89 million to shareholders through buybacks in 2025 under a $900 million authorization, indicating a commitment to enhancing shareholder value [2][4].