5 Stocks Making Headlines Today

4. JOYY Inc. (NASDAQ:YY) has declined 13.21% as of 12:52 PM ET after the Singapore-based social media platform was downgraded from an Overweight to an Equal Weight rating by Alex Poon at Morgan Stanley. The analyst also lowered the price target on JOYY Inc. (NASDAQ:YY) from $50 to $45. Poon shared that following JOYY Inc.’s (NASDAQ:YY) Q1 results, he sees restricted “visibility into a growth inflection.” He expects Huya to contribute to JOYY Inc.’s (NASDAQ:YY) losses in 2022 and sees a limited improvement in the company’s margins for the remaining year.

Here’s what Tao Value said about JOYY Inc. (NASDAQ:YY) in its Q1 2021 investor letter:

“We exited YY after 3.5 years near all-time high. The annualized return (13~%) yet is below expectation, especially compared to founder CEO David Xueling Li’s net worth (mainly in YY shares) ballooning from $1.1B in 2018 to $2.3B in 2021. On value realization, I think YY did a good job, acquiring Bigo, spinning off then selling Huya & selling YY Live to Baidu. But as a minority shareholder, we were treated unfairly. E.g. the Bigo deal (for buying shares from executives including Li) was done by YY stock when the price was severely depressed, causing significant dilution for our ownership. We learned our lessons and will evaluate more rigorously in management’s partnership mindset in the future.”

JOYY Inc. (NASDAQ:YY) was held by 17 hedge funds at the end of Q1 2022.