Huya Has Become Interesting Again

  • The shares have fallen well off their post-IPO high, which was a little over the top.
  • Revenue is still growing at triple digit rate, but marketing cost is growing considerably faster and content cost is also rising at least at the rate of revenue growth.
  • The company has moved to generating cash and (small) profits and sits on a mountain of cash.
  • We also have some concerns though, pertaining to earnings visibility and sustainability, regulators and content cost.

Source: Huya Has Become Interesting Again – Huya Broadcasting (NYSE:HUYA) | Seeking Alpha