YY - JOYY Still Undervalued After YY Live Sale To Baidu

2025-02-27 21:12:19 ET

Summary

• JOYY's deal to sell YY Live to Baidu finally closed. JOYY got an additional $240 million cash payout.
• Bigo Live's temporary app store removal will likely hurt near term results, but investors will look past this.
• Likee briefly benefited from the TikTok ban, but downloads petered out quickly. Now TikTok is back & Likee has similar usage as before.
• I believe JOYY is worth $111 per share, making it a buy.

Introduction: JOYY’s 3 News Events

The past few months went from tumultuous to positive for JOYY ( YY ) very quickly. This gives credence to the method of investing I profess which tells investors not to overreact to short-term noise unless it breaks the thesis. We live in a new market environment where you can make trades on your phone within seconds if you get the itch to make a change. Selling on negative headlines late last year would have been a disastrous overreaction....

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