Though Huya has taken off like a rocketship, the parent company, YY's stock has stayed flat.
YY, backing out its Huya stake, still has a solid core business that is being overlooked.
YY looks to be one of the more undervalued names in all of tech.
Investment Thesis
YY (NASDAQ:YY), the parent company of superstar e-sports streaming company Huya (NYSE:HUYA), is undervalued because investors are underestimating YY's stake in Huya...According to Huya's IPO prospectus, YY owns 90.07 million shares of Huya. As of writing this, Huya while down 12% is trading at $43 per share. That means YY's stake is worth $3.87 billion.
YY's market cap is at $7 billion, and on the last earnings call, total cash and cash equivalents totaled to $2.05 billion, even after spending almost $300 million in acquiring a stake in Bigo,.....
seekingalpha.com/article/4182896-yy-cheap