HUYA and DouYu Combined Is More Than Just A Monopoly

HUYA Inc.’s (NYSE: HUYA) merger with DouYu International Holdings Limited (NASDAQ: DOYU) is the kind of aggressive strategic maneuvering that makes investors go for Chinese ADRs in the first place. The combination will create a live game streaming behemoth with dominant market share, almost monopolistic if I’m allowed to use that word, with a major strategic advantage over peers, leadership in technology, and better access to top streamers, right set of ingredients to ward off any emerging threats from the likes of Kuaishou. Financially, the combined company will have some…

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Aggressive Zynga Is Better Than A Cash Rich One

Zynga Inc. (NASDAQ: ZNGA), like the broader video game sector, is doing well, enjoying a favorable demand environment. What is more exciting is that the company is finally stepping on the gas to execute a growth strategy that the company talked about forever. Lockdown has fueled every video game company in the world, thanks to people staying indoors and sharpening their video game skills, and you could have picked any stock in the space; chances are you would have made money, but as we enter the ‘second leg’ of the…

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DouYu Has Achieved Critical Mass For Profitable Growth

DouYu International Holdings (Nasdaq: DOYU) is a live streaming service in China, like Twitch owned by Amazon (Nasdaq: AMZN) in the U.S., that has achieved critical mass needed for the stock to attract investor interest. The live streaming of e-sports and video games has been accepted as a mainstream form of entertainment in China. Two players, DouYu and Huya Inc. (Nasdaq: HUYA), dominate the market, second largest in the world, commanding close 60% market share combined with the industry growing at healthy double-digit rates. The Street continues to ignore these names…

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