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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360 Finance, Not Just Because Ant Financial Is Going Public

We are usually reluctant to participate in IPOs and upcoming Ant Financial issue, 33% owned by Alibaba (Nasdaq: BABA), will be no different. The issue did nudge us to take a closer look at the online lending space in China again, including 360 Finance, Inc. (Nasdaq: QFIN), which is one of the three major next-generation online lending platforms in the country. We are impressed with what we saw. Even though investors continue to ignore 360 Finance, the business has transitioned towards more data & technology-centric, away from credit risk management.…

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Qutoutiao Is Making Positive Changes, Stock Will Follow

We recently bought shares of Qutoutiao Inc. (Nasdaq: QTT) and here’s why. The business has started to show results of the positive changes undertaken by the management to strengthen its strategic position in the Chinese content aggregator market and do so profitably soon. For more than a year, the Street has put the stock in the penalty box for its exploding cost structure, concerns over competition from Toutiao (owned by ByteDance of Tiktok fame), and a lack of a clear path to profitability. Even though the company was growing fast,…

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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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Tencent Music Stock Can Follow Spotify Now

Investors have largely ignored Tencent Music Entertainment Group (NYSE: TME) stock ever since the company went public, earlier this year, concentrating largely on much sexier Spotify (Nasdaq: SPOT) in the music streaming space. That may not change anytime soon, but now that Spotify is once again gaining favors among investors, Tencent deserves a closer look and the business offers enough promise to help stock follow the Spotify’s lead, if not overtake. Some amount of Wall Street’s indifference towards Tencent Music’s stock is due to the difference between Tencent Music’s business…

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