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DouYu Is Well-Positioned For A Rebound


  • DouYu went public in the U.S in July 2019 at $11.50 per ADS.
  • The firm has a prominent live streaming entertainment site in China.
  • It looks well-positioned to rebound from the COVID-19 pandemic's effects, and I'm bullish on the stock at its current level.
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Quick Take

DouYu (NASDAQ:DOYU) went public in July 2019, selling U.S. investors its ADSs at a price of $11.50 each. The firm operates a game-focused live streaming entertainment service for Chinese users.

DOYU looks well-positioned to benefit from the gradual reopening of China’s economy after the COVID-19 pandemic recedes but consumers remain wary of public events.

I’m bullish on the stock up to $11.50 per share.

Company and Market

Wuhan, China-based DouYu was founded in 2013 to develop and operate a game-centric live streaming platform in the country. Management is headed by founder, CEO and director Shaojie Chen, who previously founded and managed Shenzhen Zhangmenren Network Technology.

The firm’s monetization channels consist of live streaming, advertisements and others, of which live streaming accounted for 86.1% and 80.7% of its total revenue for 2018 and 2017, respectively. Its live streaming income is generated mainly by the sales of virtual gifts.

For Q4 2018, DouYu had 153.5 million average total Monthly Active Users (MAUs), a year-over-year increase of 14.3% from 134.3 million average total MAUs during Q4 2017.

As of the end of 2018, the company had 6 million registered streamers, of which 5,200 were "top streamers" with whom DOYU has signed a contract - an increase from 3.9 million streamers and 2,000 "top streamers", respectively, from last year.

DouYu’s average total eSports MAUs about 80.9 million and 95.8 million in Q4 2017 and 2018, respectively.

According to a 2018 market research report by Streamlabs, the global live streaming industry was valued at $10.1 billion in 2018 and is projected to reach $13.1 billion in 2019.

DoYou competes with other large social networks, video streaming platforms, and other online entertainment services that provide alternatives to watching eSports competitions.

Direct and indirect competitors include:

  • Huya (HUYA)
  • Huajiao
  • Youku Tudou
  • Bilibili (BILI)
  • iQIYI (

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This article was written by

Donovan Jones profile picture

Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and software companies.

He also leads the investing group

IPO Edge

which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure: I am/we are long DOYU. 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.

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Comments (6)

DOYU is the key to this merger! Tencent, backing this along with adding Penguin to the merger makes this merger worth closer to 25-30 ps
Long, DOYU, HUYA, MOMO, YY, the whole business...
What we need to know about this company is "What is the amount of revenue that will be lost, due to the virus, for in-person tournaments which were cancelled and when will the tournaments return?".
Manzanita Research profile picture
Good article. I wonder what'll be the catalyst for DOYU to make a sustained move up? Trading sideways now.
Admiral Risky profile picture
HUYA/DOYU merger would be absurdly beneficial for both companies and Tencent has put members on both boards. There's another writeup on this subject here on SA fwiw.
Long Doyu and huya
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