DouYu International Holdings Ltd. (DOYU), a company that provides entertainment live streaming services and interactive games through its platform, has slid 10.09% in the pre-market trading session. The slump could be attributed to the profit-taking factor after the stock went berserk during Wednesday’s regular trading session after rocketing by 60.56% to close the day at $2.28. The massive surge came following the announcement of strong quarterly results.
Q4 & FY 2021 Results
On Wednesday, DOYU released the financial results for the fourth quarter and full-year 2021. The total net revenue during the three months grew by 2.6% on a year-over-year basis to $3.8.4 million. The net loss suffered during the quarter was $30.3 million versus $36.03 million during the same quarter of the preceding year. The total net revenues for the full year 2021 stood at $1.43 billion versus $1.5 billion during fiscal 2020. The net loss suffered during the full year 2021 was $97.3 million compared to the net income of $63 million it was able to earn during fiscal 2020.
Share Repurchase Program
Shedding a light on the developments related to the share repurchase program, DOYU said that during August 2021, its Board of Directors had authorized the share repurchase program. Under the terms of the program, the company could repurchase up to $100 million of its ordinary shares during 12 months, which began on the 30th of August 2021. Till 31st December, the company had been able to purchase $16.7 million worth of ordinary shares under the program.
Comments from CEO of DOYU
Mr. Shaojie Chen, Chief Executive Officer of DOYU, while commenting on the development said that 2021 has proven to be a year full of challenges for the company. In the face of challenges, the company continued to implement its strategies for enhancement in the game-centric content ecosystem. Moving forward, the company would continue to explore the new and emerging growth avenues via improving upon its leadership position in the gaming industry.
What’s Next for DOYU?
Analysts are of the view that DOYU stock is an excellent buy candidate at the moment. The reason for that is the optimistic-looking technical indicators, which are hinting at exceptional stock performance in weeks to come.