Yahoo Finance Why YY Inc. Stock Popped 14.2% in November
What happened
Shares of YY Inc. (NASDAQ: YY) climbed 14.2% in November, according to data from S&P Global Market Intelligence, after the Chinese live-streaming platform announced strong quarterly results.
YY stock skyrocketed nearly 25% on Nov. 15, 2017, alone. That was the first trading day after the company confirmed that its third-quarter revenue grew 48% year over year to $464.8 million, which translated to 41.2% growth in adjusted net income per American depositary share (ADS) to $1.59. Both figures arrived comfortably ahead of Wall Street's models, which called for revenue of $422.8 million and adjusted earnings of $1.45 per ADS.
IMAGE SOURCE: GETTY IMAGES.
So what
YY chairman and acting CEO Mr. David Xueling Li called the results "robust," highlighting impressive 36.6% growth in monthly active users (to 73 million) and 46.5% growth in total live-streaming paying users (to more than 6.3 million). In particular, YY is striving to attract younger users through new social functionality and features like Happy Basketball and Clip Doll Online.
The company also launched new short-form video products during the quarter -- a move that Li argues should allow it to "tap into more segmented video verticals and fulfill the diversified demands of users across China."
In addition, YY's Huya subsidiary continued to deliver rapid growth, with revenue for the game-streaming platform nearly tripling from the same year-ago period to represent nearly 19% of total company sales.
Now what
YY stock subsequently rallied to a fresh 52-week high in the days following its report before pulling back to hover around its current levels. With the stock up 156% so far in 2017, and with no signs of its growth abating in the near future, I think YY has plenty of room to continue rising from here.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
