JOYY Inc.: Significant Upside Hidden Behind Deep Undervaluation And Scalable Ad Infrastructure

AImango Research 80 Followers Follow Summary JOYY Inc. trades at a steep discount, with an EV/Sales multiple of just 0.29x despite $3.1 billion in net cash. BIGO Live's ARPPU of $220.5 far surpasses Twitch, highlighting strong user monetization and engagement across JOYY's social entertainment segment. BIGO Ads revenue grew 53.1% YoY, with management targeting a $1 billion run rate by 2028, supporting a bullish SOTP valuation. Management is aggressively returning capital via buybacks and $900 million in planned dividends, projecting 71% upside to a $127.96 fair value. Alistair Berg/DigitalVision via Getty Images JOYY Inc. ( JOYY ) has been on my radar for a while now, ever since it sold its legacy YY live streaming business to Baidu for $2.1 billion in cash. That transaction helped JOYY's net cash balance jump This article was written by AImango Research 80 Followers Follow I grew up in Asia and spent several years working as a wealth manager at a Swiss trust company before relocating to the U.S. to focus on financial planning and analysis. Today, my full-time role involves financial modeling and revenue forecasting for publicly traded companies. I've always had a strong interest in investing and look forward to sharing my insights and perspectives. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.