JOYY Inc. (JOYY) stock price is $83.96, up 1.63% on the day, as of Oct 19, 2026. It has a market cap of $4.41Bn and a P/E ratio of 20.31, and is classified in the Social Media industry (Technology sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap4.41 Bn
P/E20.31
P/S1.95
Div. Yield0.00
Total Debt (Qtr)43.91 Mn
Revenue Growth (1y) (Qtr)16.35
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About
JOYY Inc. is a global technology company that operates a diversified portfolio of social entertainment platforms and business to business technology solutions. The company leverages its proprietary technology stack to connect social interaction programmatic advertising and omnichannel smart commerce. Its core offerings include live streaming instant messaging short video and social networking applications that serve users in North America Europe the Middle East Southeast…
JOYY Inc. is a global technology company that operates a diversified portfolio of social entertainment platforms and business to business technology solutions. The company leverages its proprietary technology stack to connect social interaction programmatic advertising and omnichannel smart commerce. Its core offerings include live streaming instant messaging short video and social networking applications that serve users in North America Europe the Middle East Southeast Asia and South America. JOYY Inc. states its mission is to enrich lives through technology and it maintains a presence in over 150 countries with a monthly active user base of 272.1 million as of the fourth quarter of 2025. The company’s suite of apps enables users to host and watch live streams exchange messages create short videos and play casual games while building communities around shared interests.
Revenue is generated from three main streams: virtual item sales on social entertainment platforms advertising services and smart commerce solutions. In 2025 virtual tips for live streaming accounted for 72.0% of total revenue advertising contributed 20.8% and ecommerce and other revenues from the smart commerce business represented 7.1%. The non live streaming portion of revenue rose 32.2% year over year reflecting the shift toward advertising and commerce. The company also earns recurring subscription fees and transaction based fees from its software as a service offerings. Total revenue amounted to US$2.1 billion in 2025 down from US$2.2 billion in 2024 and US$2.3 billion in 2023 while operating cash flow remained strong at US$302.3 million in 2025.
The company operates through the following segments: Core Global Social Entertainment Products and Strategic Growth Engines (Advertising and Smart Commerce).
Core Global Social Entertainment Products: This segment comprises Bigo Live a live streaming platform imo an instant messenger Likee a short video platform and Hago a social networking service. Bigo Live enables users to host and watch live streaming sessions share life moments showcase talents and interact with people worldwide. imo offers audio and video calls group calls document sharing and other communication tools for personal and business needs. Likee empowers users to discover create and share short videos with simple all in one video creation tools and an AI backed personalized feed. Hago provides over 600 casual games integrating social features such as audio and video multi user chatrooms and 3D virtual interactive party games to foster connections while having fun. The segment enables users to create share and interact with content through live streams messages short videos and casual games while monetizing mainly through virtual gifts and to a lesser extent through advertising. Bigo Live is the largest revenue contributor and reported a rank as the world’s ninth social app by in app purchase revenue in 2025 according to data.ai.
Strategic Growth Engines (Advertising and Smart Commerce): This segment includes BIGO Ads an AI powered programmatic advertising platform that monetizes first party traffic from the company’s social apps and third party inventory and Shopline a global smart commerce SaaS that provides merchants with storefront management payment processing logistics and marketing tools. BIGO Ads uses deep learning real time bidding and smart bidding models such as oCPC and ROAS optimization to deliver targeted ads and measure performance. Shopline offers an end to end solution for online commerce integrating enterprise grade storefront management localized and cross border payment processing logistics inventory control and automated marketing tools. In 2025 BIGO Ads revenue grew 38.5% year over year to US$398.5 million while Shopline contributed to the ecommerce and other revenue line which represented 7.1% of total revenue. Revenue is derived from advertising fees and from subscription and transaction based services.
JOYY Inc. holds a leading position in the global social entertainment sector with its apps regularly ranking among the top ten for consumer spending in multiple regions. The company faces competition from short video platforms such as TikTok regional live streaming services advertising technology firms like AppLovin and Unity and smart commerce providers such as Shopify. Its competitive advantages arise from a large global user base of 272.1 million monthly active users a localized operational footprint in over 150 countries and an integrated technology stack that combines AI driven recommendation advertising optimization and commerce solutions to create a self reinforcing flywheel of user engagement and monetization. The firm also invests heavily in research and development employing over 2,000 engineers and holding thousands of patents trademarks and domain names as of the end of 2025. This sustained innovation supports continuous improvement of its video audio and networking technologies ensuring low latency and high quality experiences even under challenging network conditions.
JOYY Inc. serves a diverse customer base that includes individual consumers who use its social apps for communication and entertainment advertisers who purchase targeted campaigns through its advertising network and merchants who subscribe to its smart commerce platform to manage online stores payments and marketing. While the filing does not disclose specific partner names the company reports a broad geographic reach across North America Europe the Middle East Southeast Asia and South America and it supports developers and brands through its SDK integrations with major mediation platforms such as AppLovin MAX and Unity Level Play. The company’s advertising platform works with a wide range of brands seeking user acquisition and app developers looking to monetize inventory while its smart commerce solution serves small medium sized businesses as well as larger merchants aiming to expand their online presence.
Sector:TechnologySector rationaleJoyy's primary revenue is derived from its proprietary technology platforms, specifically live streaming (Bigo Live), instant messaging (imo), and short video (Likee), which are classified as streaming and social media under Technology. Additionally, the company operates a programmatic advertising platform (BIGO Ads) and a smart commerce SaaS (Shopline), both of which are core Technology business models. While it provides social entertainment, the revenue model is based on digital platforms, AI-driven advertising, and software subscriptions rather than traditional media or live events.Industries:Social MediaSocial MediaPrimaryThe company's core business and largest revenue driver (72% from virtual tips) is its portfolio of social entertainment platforms, including Bigo Live, imo, Likee, and Hago, which connect a global user base of 272.1 million monthly active users.Digital AdvertisingDigital AdvertisingSecondaryThe company operates BIGO Ads, an AI-powered programmatic advertising platform that uses real-time bidding and smart bidding models to monetize first-party and third-party inventory, contributing 20.8% of total revenue.E-commerce SoftwareE-commerce SoftwareSecondaryThe company owns Shopline, a global smart commerce SaaS that provides merchants with storefront management, payment processing, and marketing tools, contributing to the 7.1% of revenue from ecommerce and other sources.Classified using BQ-MICSCIK: 0001530238
Bull & bear
Investment Thesis
▲ Bull case
JOYY's transition to a three-segment reporting structure—social entertainment, ad tech, and e-commerce SaaS—will provide clearer visibility into the distinct growth trajectories and profitability of each business unit, enabling investors to better assess the company's strategic progress. This structural shift is significant because it moves beyond the legacy view of JOYY as primarily a live streaming company, highlighting the maturation of its higher-growth, higher-margin ad tech and e-commerce SaaS engines. By isolating these segments, the market will more readily recognize that non-live streaming businesses now constitute over 32% of revenue and are growing at substantially faster rates, with the ad tech segment alone delivering 61.5% year-over-year growth in Q4. This transparency should correct the market's historical undervaluation of JOYY's diversified model and lead to a re-rating as a multi-engine growth story rather than a single-product play. The company's explicit statement that this change begins in Q1 2026 means investors will soon see granular data proving the resilience and scalability of these adjacent businesses, reducing reliance on the volatile live streaming core for overall valuation.
The aggressive expansion and monetization of the BIGO Audience Network, targeting $1 billion in revenue by 2028, represents a substantial, underappreciated long-term catalyst that extends far beyond current advertising performance. Management emphasized this is not merely an incremental goal but a strategic imperative backed by concrete investments in R&D, sales, and infrastructure, with the network already demonstrating 166% year-over-year growth in SDK requests and 82.5% year-over-year growth in third-party ad revenue. The network's unique value lies in its ability to monetize third-party app inventory through programmatic placements, creating a scalable, asset-light business with high operating leverage—unlike traditional ad sales requiring direct sales teams. Critically, the management team highlighted that the unit economics are already healthy and improving, meaning scalability will drive margin expansion rather than dilution, a point often overlooked when focusing solely on topline growth. This positions the Audience Network as a potential standalone high-value asset within the portfolio, with significant optionality for partnerships or even spin-off value that the market is not currently pricing in given the segment's current contribution to overall revenue.
JOYY's capital return strategy, which exceeded 108% of operating cash flow in 2025 and included an additional $20 million dividend, signals deep management confidence in sustainable cash generation and intrinsic value that the market is underestimating through an overly narrow focus on GAAP profitability metrics. The company's emphasis on non-GAAP metrics—showing 10.8% year-over-year growth in operating income and a 12.1% net margin in Q4—reflects a business model where strategic investments (like those in AI and user experience) are appropriately excluded from core profitability assessment, revealing a stronger underlying economic engine than GAAP might suggest. Furthermore, the massive net cash position of $3.26 billion provides a powerful floor for valuation and enables continued aggressive buybacks, which management explicitly stated they believe are warranted due to persistent undervaluation. The combination of returning capital at a rate exceeding cash generation while maintaining a fortress balance sheet indicates that management views the current share price as a significant discount to intrinsic value, a conviction that should ultimately drive sustained price appreciation as buybacks reduce share count and dividends provide tangible yield in a low-interest environment.
The integration of AI across JOYY's platforms—particularly in content recommendation, user engagement, and virtual gifting—is creating a durable competitive moat in social entertainment that is driving meaningful improvements in user behavior and monetization efficiency, yet these benefits are not fully appreciated in current growth projections. As noted in the call, AI-driven features led to a 5.6% quarter-over-quarter increase in average viewing time per user on Bigo Live, with over 30% of virtual gift consumption now sourced from AI-generated items as of January 2026. This is not a temporary engagement boost but a structural enhancement to the platform's core loop, improving both user retention and the efficiency of converting engagement into revenue. Unlike superficial AI integrations, JOYY's approach leverages its proprietary data and infrastructure to refine recommendations and incentives at scale, directly impacting key metrics like paying user growth (up 1.5% Q/Q) and ARPU. The market tends to view AI as a costly, experimental add-on, but JOYY's implementation is already delivering measurable, scalable returns on investment, suggesting that future AI enhancements will continue to drive organic growth and margin expansion in the core business without proportional increases in sales and marketing spend—a significant leverage point that is currently flying under the radar.
Shopline's progress toward breakeven while maintaining double-digit revenue growth represents a de-risked, high-potential growth engine that the market is overlooking due to historical losses and a misunderstanding of its unique monetization model. Management clarified that Shopline does not rely on traditional SaaS seat-based pricing but instead generates revenue through a take rate on growing GMV, aligning its success directly with merchant success and creating a scalable, network-effects-driven model. The company highlighted normalized R&D spending, gross profit expansion, and progress toward breakeven—achievable by 2028—as evidence that the business has moved past the investment phase into a stage of operating leverage. Crucially, the cross-border merchant focus and advanced toolset (payments, marketing integration) differentiate Shopline from basic storefront builders, positioning it to capture higher-value merchants in growing global e-commerce markets. The market often views e-commerce SaaS as a crowded, low-margin space, but Shopline's model—especially with its focus on enabling merchants to capitalize on GMV growth—has the potential to deliver SaaS-like scalability with commerce-linked upside, a duality that is not yet reflected in its current valuation or growth expectations.
JOYY's transition to a three-segment reporting structure—social entertainment, ad tech, and e-commerce SaaS—will provide clearer visibility into the distinct growth trajectories and profitability of each business unit, enabling investors to better assess the company's strategic progress. This structural shift is significant because it moves beyond the legacy view of JOYY as primarily a live streaming company, highlighting the maturation of its higher-growth, higher-margin ad tech and e-commerce SaaS engines. By isolating these segments, the market will more readily recognize that non-live streaming businesses now constitute over 32% of revenue and are growing at substantially faster rates, with the ad tech segment alone delivering 61.5% year-over-year growth in Q4. This transparency should correct the market's historical undervaluation of JOYY's diversified model and lead to a re-rating as a multi-engine growth story rather than a single-product play. The company's explicit statement that this change begins in Q1 2026 means investors will soon see granular data proving the resilience and scalability of these adjacent businesses, reducing reliance on the volatile live streaming core for overall valuation.
The aggressive expansion and monetization of the BIGO Audience Network, targeting $1 billion in revenue by 2028, represents a substantial, underappreciated long-term catalyst that extends far beyond current advertising performance. Management emphasized this is not merely an incremental goal but a strategic imperative backed by concrete investments in R&D, sales, and infrastructure, with the network already demonstrating 166% year-over-year growth in SDK requests and 82.5% year-over-year growth in third-party ad revenue. The network's unique value lies in its ability to monetize third-party app inventory through programmatic placements, creating a scalable, asset-light business with high operating leverage—unlike traditional ad sales requiring direct sales teams. Critically, the management team highlighted that the unit economics are already healthy and improving, meaning scalability will drive margin expansion rather than dilution, a point often overlooked when focusing solely on topline growth. This positions the Audience Network as a potential standalone high-value asset within the portfolio, with significant optionality for partnerships or even spin-off value that the market is not currently pricing in given the segment's current contribution to overall revenue.
JOYY's capital return strategy, which exceeded 108% of operating cash flow in 2025 and included an additional $20 million dividend, signals deep management confidence in sustainable cash generation and intrinsic value that the market is underestimating through an overly narrow focus on GAAP profitability metrics. The company's emphasis on non-GAAP metrics—showing 10.8% year-over-year growth in operating income and a 12.1% net margin in Q4—reflects a business model where strategic investments (like those in AI and user experience) are appropriately excluded from core profitability assessment, revealing a stronger underlying economic engine than GAAP might suggest. Furthermore, the massive net cash position of $3.26 billion provides a powerful floor for valuation and enables continued aggressive buybacks, which management explicitly stated they believe are warranted due to persistent undervaluation. The combination of returning capital at a rate exceeding cash generation while maintaining a fortress balance sheet indicates that management views the current share price as a significant discount to intrinsic value, a conviction that should ultimately drive sustained price appreciation as buybacks reduce share count and dividends provide tangible yield in a low-interest environment.
The integration of AI across JOYY's platforms—particularly in content recommendation, user engagement, and virtual gifting—is creating a durable competitive moat in social entertainment that is driving meaningful improvements in user behavior and monetization efficiency, yet these benefits are not fully appreciated in current growth projections. As noted in the call, AI-driven features led to a 5.6% quarter-over-quarter increase in average viewing time per user on Bigo Live, with over 30% of virtual gift consumption now sourced from AI-generated items as of January 2026. This is not a temporary engagement boost but a structural enhancement to the platform's core loop, improving both user retention and the efficiency of converting engagement into revenue. Unlike superficial AI integrations, JOYY's approach leverages its proprietary data and infrastructure to refine recommendations and incentives at scale, directly impacting key metrics like paying user growth (up 1.5% Q/Q) and ARPU. The market tends to view AI as a costly, experimental add-on, but JOYY's implementation is already delivering measurable, scalable returns on investment, suggesting that future AI enhancements will continue to drive organic growth and margin expansion in the core business without proportional increases in sales and marketing spend—a significant leverage point that is currently flying under the radar.
Shopline's progress toward breakeven while maintaining double-digit revenue growth represents a de-risked, high-potential growth engine that the market is overlooking due to historical losses and a misunderstanding of its unique monetization model. Management clarified that Shopline does not rely on traditional SaaS seat-based pricing but instead generates revenue through a take rate on growing GMV, aligning its success directly with merchant success and creating a scalable, network-effects-driven model. The company highlighted normalized R&D spending, gross profit expansion, and progress toward breakeven—achievable by 2028—as evidence that the business has moved past the investment phase into a stage of operating leverage. Crucially, the cross-border merchant focus and advanced toolset (payments, marketing integration) differentiate Shopline from basic storefront builders, positioning it to capture higher-value merchants in growing global e-commerce markets. The market often views e-commerce SaaS as a crowded, low-margin space, but Shopline's model—especially with its focus on enabling merchants to capitalize on GMV growth—has the potential to deliver SaaS-like scalability with commerce-linked upside, a duality that is not yet reflected in its current valuation or growth expectations.
JOYY's reliance on AI-driven features to boost engagement and monetization in live streaming carries significant execution risk that the market is overlooking, as the sustainability and scalability of these enhancements remain unproven at scale and could lead to diminishing returns or increased user fatigue. While management highlighted a 5.6% quarter-over-quarter increase in average viewing time and over 30% of virtual gift consumption from AI-generated gifts, these metrics are based on early-stage implementation and may not reflect long-term user behavior, particularly as novelty wears off or users become wary of algorithmic manipulation. The company's dependence on AI for core engagement improvements raises concerns about the durability of the recovery—if AI-driven gains prove temporary or require constant, costly retraining to maintain, the underlying business model may not have achieved true structural improvement. Furthermore, the integration of LLMs and multimodal data introduces complexity and potential points of failure in content delivery systems, where any degradation in recommendation quality could quickly reverse engagement gains, creating a volatile rather than stable growth trajectory that the market is not pricing in given its current optimism about AI's role in the recovery.
The ambitious $1 billion revenue target for the BIGO Audience Network by 2028 faces substantial scalability challenges that management underestimated, particularly regarding traffic quality, advertiser concentration, and the inherent volatility of third-party ad networks, which could undermine both growth projections and profitability assumptions. While the network showed strong SDK request growth (166% year-over-year), this metric alone does not guarantee sustainable revenue, as it depends on the quality and consistency of traffic from partner apps—much of which may come from low-value, non-brand-safe inventory that struggles to attract premium advertisers. The company's expansion into new verticals and regions increases complexity, and the reliance on programmatic dynamics means revenue can be highly sensitive to shifts in advertiser demand, platform policy changes (e.g., Apple's ATT framework), or economic downturns, all of which could disproportionately impact a network still in its growth phase. Crucially, management acknowledged the need for increased R&D and sales investment to sustain growth, implying that current profitability may not be scalable without ongoing subsidy, a risk the market is ignoring by focusing solely on the headline growth rate without questioning the cost structure required to maintain it.
Shopline's path to breakeven by 2028, while presented as achievable, relies on continued double-digit revenue growth and gross profit expansion that may not be sustainable given intensifying competition in the global e-commerce SaaS space and the company's reliance on cross-border merchants, who are more vulnerable to macroeconomic shocks and trade disruptions. Although management noted progress in narrowing losses and a take-rate-based model, the business has historically operated at a loss, and achieving breakeven requires not just revenue growth but also significant operating leverage—which assumes fixed costs can be spread over rising GMV without proportional increases in sales, marketing, or support costs. The cross-border merchant focus, while a growth driver, introduces exposure to currency fluctuations, differing regulatory environments, and logistics complexities that could erode margins or hinder scalability. Furthermore, the e-commerce SaaS market is crowded with well-funded competitors (e.g., Shopify, BigCommerce) that have deeper ecosystem integrations and greater brand recognition, making it difficult for Shopline to gain meaningful share without sustained, costly investment—a reality that contradicts the notion of an easy, low-cost path to profitability that the market may be inferring from management's optimistic commentary.
The company's aggressive capital return policy, which exceeded 108% of operating cash flow in 2025, poses a significant risk to long-term financial flexibility and growth investment capacity, as it prioritizes shareholder returns over reinvestment in the business during a critical phase of strategic transformation. While the strong balance sheet ($3.26 billion net cash) provides a buffer, returning more cash than generated annually means the company is drawing down its reserves or relying on future cash flow to sustain this pace, which may not be guaranteed if growth slows or margins compress. This approach limits the ability to make bold, transformative investments—such as further AI infrastructure, strategic acquisitions, or deep R&D in emerging technologies—that could be necessary to maintain competitive advantage in fast-evolving markets like ad tech and social entertainment. The market is viewing this as a sign of confidence and undervaluation, but it could equally signal a lack of compelling internal investment opportunities or a short-term focus that sacrifices long-term value creation, particularly as the company transitions to a multi-segment model requiring upfront investment to realize synergies.
The planned shift to three-segment reporting, while intended to increase transparency, may inadvertently highlight the persistent weakness and volatility of the live streaming core business, which remains the largest revenue contributor and could undermine investor confidence in the company's overall stability if its growth proves less durable than anticipated. By isolating social entertainment as a distinct segment, investors will see plainly that this business—despite recent sequential improvements—still faces fundamental challenges in user acquisition, monetization, and content relevance in a crowded live streaming landscape where platform loyalty is low and switching costs are minimal. The recovery, while real, is built on incremental optimizations (e.g., refined incentives, AI tweaks) rather than a breakthrough innovation, leaving it vulnerable to renewed declines if competitor innovation accelerates or user preferences shift. Furthermore, the continued reliance on developed markets for stability, while positive, does not eliminate the inherent volatility of live streaming as a category, where trends can change rapidly based on cultural shifts, influencer dynamics, or platform algorithm changes—factors outside JOYY's direct control that could trigger renewed downturns, making the segment a persistent drag on overall performance that the market may not fully appreciate until the new reporting structure exposes its inconsistent contribution.
JOYY's reliance on AI-driven features to boost engagement and monetization in live streaming carries significant execution risk that the market is overlooking, as the sustainability and scalability of these enhancements remain unproven at scale and could lead to diminishing returns or increased user fatigue. While management highlighted a 5.6% quarter-over-quarter increase in average viewing time and over 30% of virtual gift consumption from AI-generated gifts, these metrics are based on early-stage implementation and may not reflect long-term user behavior, particularly as novelty wears off or users become wary of algorithmic manipulation. The company's dependence on AI for core engagement improvements raises concerns about the durability of the recovery—if AI-driven gains prove temporary or require constant, costly retraining to maintain, the underlying business model may not have achieved true structural improvement. Furthermore, the integration of LLMs and multimodal data introduces complexity and potential points of failure in content delivery systems, where any degradation in recommendation quality could quickly reverse engagement gains, creating a volatile rather than stable growth trajectory that the market is not pricing in given its current optimism about AI's role in the recovery.
The ambitious $1 billion revenue target for the BIGO Audience Network by 2028 faces substantial scalability challenges that management underestimated, particularly regarding traffic quality, advertiser concentration, and the inherent volatility of third-party ad networks, which could undermine both growth projections and profitability assumptions. While the network showed strong SDK request growth (166% year-over-year), this metric alone does not guarantee sustainable revenue, as it depends on the quality and consistency of traffic from partner apps—much of which may come from low-value, non-brand-safe inventory that struggles to attract premium advertisers. The company's expansion into new verticals and regions increases complexity, and the reliance on programmatic dynamics means revenue can be highly sensitive to shifts in advertiser demand, platform policy changes (e.g., Apple's ATT framework), or economic downturns, all of which could disproportionately impact a network still in its growth phase. Crucially, management acknowledged the need for increased R&D and sales investment to sustain growth, implying that current profitability may not be scalable without ongoing subsidy, a risk the market is ignoring by focusing solely on the headline growth rate without questioning the cost structure required to maintain it.
Shopline's path to breakeven by 2028, while presented as achievable, relies on continued double-digit revenue growth and gross profit expansion that may not be sustainable given intensifying competition in the global e-commerce SaaS space and the company's reliance on cross-border merchants, who are more vulnerable to macroeconomic shocks and trade disruptions. Although management noted progress in narrowing losses and a take-rate-based model, the business has historically operated at a loss, and achieving breakeven requires not just revenue growth but also significant operating leverage—which assumes fixed costs can be spread over rising GMV without proportional increases in sales, marketing, or support costs. The cross-border merchant focus, while a growth driver, introduces exposure to currency fluctuations, differing regulatory environments, and logistics complexities that could erode margins or hinder scalability. Furthermore, the e-commerce SaaS market is crowded with well-funded competitors (e.g., Shopify, BigCommerce) that have deeper ecosystem integrations and greater brand recognition, making it difficult for Shopline to gain meaningful share without sustained, costly investment—a reality that contradicts the notion of an easy, low-cost path to profitability that the market may be inferring from management's optimistic commentary.
The company's aggressive capital return policy, which exceeded 108% of operating cash flow in 2025, poses a significant risk to long-term financial flexibility and growth investment capacity, as it prioritizes shareholder returns over reinvestment in the business during a critical phase of strategic transformation. While the strong balance sheet ($3.26 billion net cash) provides a buffer, returning more cash than generated annually means the company is drawing down its reserves or relying on future cash flow to sustain this pace, which may not be guaranteed if growth slows or margins compress. This approach limits the ability to make bold, transformative investments—such as further AI infrastructure, strategic acquisitions, or deep R&D in emerging technologies—that could be necessary to maintain competitive advantage in fast-evolving markets like ad tech and social entertainment. The market is viewing this as a sign of confidence and undervaluation, but it could equally signal a lack of compelling internal investment opportunities or a short-term focus that sacrifices long-term value creation, particularly as the company transitions to a multi-segment model requiring upfront investment to realize synergies.
The planned shift to three-segment reporting, while intended to increase transparency, may inadvertently highlight the persistent weakness and volatility of the live streaming core business, which remains the largest revenue contributor and could undermine investor confidence in the company's overall stability if its growth proves less durable than anticipated. By isolating social entertainment as a distinct segment, investors will see plainly that this business—despite recent sequential improvements—still faces fundamental challenges in user acquisition, monetization, and content relevance in a crowded live streaming landscape where platform loyalty is low and switching costs are minimal. The recovery, while real, is built on incremental optimizations (e.g., refined incentives, AI tweaks) rather than a breakthrough innovation, leaving it vulnerable to renewed declines if competitor innovation accelerates or user preferences shift. Furthermore, the continued reliance on developed markets for stability, while positive, does not eliminate the inherent volatility of live streaming as a category, where trends can change rapidly based on cultural shifts, influencer dynamics, or platform algorithm changes—factors outside JOYY's direct control that could trigger renewed downturns, making the segment a persistent drag on overall performance that the market may not fully appreciate until the new reporting structure exposes its inconsistent contribution.