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].

Core Viewpoint - JOYY Inc. reported a steady recovery in its livestreaming revenue and significant growth in its advertising business for the third quarter of 2025, indicating a positive trajectory for the company's overall performance and shareholder returns [4][5][11]. Financial Highlights - JOYY's total revenue for Q3 2025 was US$540 million, a 6.4% increase from US$508 million in Q2 2025 [5][6]. - Livestreaming revenue reached US$388 million, up 3.5% from US$375 million in Q2 2025, marking two consecutive quarters of growth [2][5]. - Advertising revenue from BIGO Ads was US$104 million, reflecting a year-over-year growth of 33.1% and a quarter-over-quarter increase of 19.7% [11][12]. - Non-GAAP operating income increased to US$41 million, a 16.6% year-over-year rise [2][6]. - JOYY's net cash as of September 30, 2025, was US$3.32 billion, supporting ongoing shareholder returns [2][6]. Business Highlights Livestreaming Business - JOYY's global average mobile MAUs reached 266 million, a 1.4% increase quarter-over-quarter [7]. - BIGO Live's revenue was US$368 million, maintaining a sequential growth trend [7][8]. - The average streaming hours for newly signed streamers increased by 3.5% quarter-over-quarter, indicating improved engagement [9][10]. Advertising Business - BIGO Ads achieved significant growth, with daily gross revenue reaching new heights and total spending from key cohorts increasing by 30% quarter-over-quarter [12][13]. - Revenue in North America grew by 22% quarter-over-quarter, while Western Europe saw a 41% increase, indicating strong market penetration [14].