Motley Fool
https://www.nasdaq.com/article/...tocks-at-deep-value-prices-cm943756"YY is a Chinese social media company that generates most of its revenue from its live-streaming services -- which include YY Live for music, entertainment, sports, and e-learning videos, and Huya, which mainly features video gaming streams. YY monetizes these streams by selling virtual items for unlocking premium features or virtual gifts for broadcasters.
The company also makes money from its older online gaming, membership, and advertising businesses. It's pivoting away from these slower-growth businesses to focus on the growth of its live-streaming platforms.
YY finished the fourth quarter of 2017 with 76.5 million monthly active users, which represented 37% growth from the prior-year quarter. Its total paying live-streaming users, who buy the platform's virtual goods, rose 25%, to 6.5 million.
The company's revenue rose 41%, to 11.59 billion yuan ($1.78 billion) in 2017, while its non- GAAP net income rose 64%, to 2.75 billion yuan ($422.8 million). Wall Street expects its revenue and earnings to rise another 31% and 14%, respectively, this year. Those are impressive growth rates for a stock that trades at just 14 times forward earnings...."