JOYY Accelerates The Buyback Bazooka

Summary

• JOYY stock surged 21% in 2 days due to its significant buyback increase in Q3.
• Despite headline numbers appearing weak, the report aligns with management's goal to shift the business to markets with high monetization potential.
• Management is strategically shifting focus from China to developed markets. It is cutting marketing expenses to drive bottom line improvement.
• JOYY stock's valuation remains attractive. I have a price target of ~$111.3 by year-end 2025, which is driven by cash returns and operational improvements.
• Even in a bearish case, my valuation target for YY stock is $65.1, which is a significant upside from Friday's close of $40.66.

Melpomenem

Introduction

JOYY Inc. (YY) stock rallied sharply after reporting earnings on November 26^th. I believe the stock increased mostly due to the buyback hike in the quarter. Investors value JOYY as a net-net stock with the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Family has a long position in JOYY.