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HUYA: Risky, But After A Big Dip, Call Options Are Looking Attractive

Apr. 07, 2021 10:33 AM ETHUYA Inc. (HUYA)BABA, DOYU, TCEHY54 Comments
JH Research profile picture
JH Research


  • HUYA is a large, fast-growing video game streaming company based in China.
  • The company offers an attractive P/E multiple, relative to its expected future growth.
  • This valuation is largely due to fears surrounding regulatory concerns in China, as well as short sellers driving the company's stock down in order to benefit from a potential merger.
  • Although the stock is reasonably priced given the above, call options on HUYA may still present an attractive risk-reward profile, due to their ability to limit downside exposure.

an asian chinese mid adult playing video games at home alone at night in darkness with headset and game controller sitting on sofa lying down
Photo by chee gin tan/E+ via Getty Images

HUYA Inc. (NYSE:HUYA) is a fast-growing video game streaming company. Despite the company's great growth at a cheap valuation, the stock suffers from fears of a crackdown from Chinese regulators, as well as

This article was written by

JH Research profile picture
An investor and Mathematics, Statistics and Business student with an interest in all things valuation. My more niche interests include the use of leverage for superior portfolio returns, as well as big tech in China.

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