Based in China, YY (YY) operates a social media platform that allows users to communicate in real-time via voice, text and video. Some of the activities include karaoke, online games, music concerts and even e-learning.
All in all, there appears to be no slowing to the momentum of YY stock. In Q4, revenues soared by 136% to $101.1 million, which was well above the Wall Street consensus of $84.5 million.
And YY is also profitable. The earnings came to 60 cents per share in Q4, beating the analysts’ consensus of 46 cents per share.
YY stock is far from cheap, however. The forward price-to-earnings ratio is 39. But in light of the growth, that premium is well deserved. Actually, the multiple is lower than many other social stocks like Pandora, which trades at 85 times earnings and Facebook, which has a multiple of 41.