TUYA - Tuya: A Solid Speculative Bet
2025-05-21 14:45:59 ET
Summary
- Tuya Inc. delivered strong 21% revenue growth and margin expansion, beating estimates, with all segments showing gains and operating expenses declining.
- Adjusted operating income and net profit surged, highlighting a significant turnaround and improved profitability, with positive cash flow and a healthy balance sheet.
- The company now pays a dividend, adding to its appeal, and we recommend entering around $2 for a speculative position as the stock pulls back.
- Risks remain due to supply chain uncertainties and its status as a Chinese stock, but the growth and earnings power justify a speculative TUYA buy at lower levels.
Tuya Inc. (NYSE: TUYA ) is a stock we suggested publicly for a trade back in November 2024 for a potential rapid-return. We issued a speculative trade in the $1-$1.50 range. This was because of the valuation was quite fair for the growth on display. The company is still in growth mode, but remains risky, being a Chinese stock. Beyond that execution risk remains. We suggested taking profit at $3.57 and suggested traders consider leaving a small portion of the profit in the stock....
Tuya: A Solid Speculative Bet