12 Best Performing Small Cap Stocks So Far in 2025

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1. DouYu International Holdings Ltd. (NASDAQ:DOYU)

Number of Hedge Fund Holders: 5

Year-to-Date Performance as of February 17: 636.65%

DouYu International Holdings Ltd. (NASDAQ:DOYU) operates a live game and entertainment streaming platform in China, which is accessible via PC and mobile apps. Connecting game developers, eSports professionals, advertisers, and viewers, it also sponsors players and teams, organizes tournaments, and streams other entertainment content. The platform offers video replays and graphics, which include game guides and news.

Its growth is fueled by its innovative business segment, which diversifies revenue beyond traditional live streaming. In Q3 2024, this segment saw a 49.4% year-over-year revenue increase, reaching RMB 311 million and contributing nearly 30% to the company’s total revenue. This is due to its voice-based social networking service and the successful game membership program in the innovative segment. It integrates game props with platform incentives, which are tailored to align with streamers’ marketing styles and user preferences. Since its launch in late 2022, this program has generated stable revenue.

The company employs various commercialization strategies, which include seasonal sales-driven approaches, multi-platform marketing, and its established membership program. It times marketing initiatives around game updates and seasonal events, which increase visibility. DouYu International Holdings Ltd. (NASDAQ:DOYU) is navigating macroeconomic challenges through its commitment to a game-centric content ecosystem.

While we acknowledge the growth potential of DouYu International Holdings Ltd. (NASDAQ:DOYU), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DOYU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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