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HUYA Inc. Sponsored ADR (HUYA) Soars 39.8%: Is Further Upside Left in the Stock?

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HUYA Inc. Sponsored ADR (HUYA - Free Report) shares ended the last trading session 39.8% higher at $5.09. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 40.2% loss over the past four weeks.

The upswing in HUYA's price is primarily attributed to the Chinese government’s response in favor of stabilizing the financial markets amid the ongoing Russia-Ukraine war. The Chinese government promised to introduce policies which will support property and technology companies, while stimulating the economy.

HUYA's comprehensive content offerings is driving its mobile user base. New game launches and expanding content creator base has been a tailwind.

This company is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -221.1%. Revenues are expected to be $433.62 million, down 5.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For HUYA Inc. Sponsored ADR, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUYA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

HUYA Inc. Sponsored ADR is a member of the Zacks Internet - Software and Services industry. One other stock in the same industry, Criteo S.A. (CRTO - Free Report) , finished the last trading session 3.6% higher at $27.38. CRTO has returned -15.8% over the past month.

For Criteo S.A., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.53. This represents a change of -20.9% from what the company reported a year ago. Criteo S.A. currently has a Zacks Rank of #4 (Sell).


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