Huya (HUYA) continues to be very underappreciated by the market. The company has continuously beat estimates for 8 quarters in a row, continued to show strong growth during the COVID-19 pandemic, generated substantial operating leverage, and executed well overall, but its valuation has remained at around $3.6bil for the past 1-2 months, far lower than pre-pandemic levels. With a recent investment from Tencent (TCEHY) and strong growth in users internationally, we believe Huya should continue doing quite well over the long term.
Q1 and COVID-19
Despite the economic devastation caused by COVID-19, Huya