Dallas, Texas 01/06/2014 (FINANCIALSTRENDS) – YY Inc (ADR) (NASDAQ:YY) is a China based $3.68 billion market capped social media player which offers its online users a platform to exchange voice, text and video format. Its platforms include “YY.com, Duowan.com and Mobile YY”. It makes money by offering paying advertisers a form to place their advertisements in the form of “banners, text-links, videos, logos and buttons” which will be seen and accessed by its registered users. The Chinese firm had tapped the U.S financial market in the form of American depository receipts to raise funds over the previous year.
During trading last week, the stock of YY Inc (ADR) (NASDAQ:YY) shot up by a significant 18.5 percent. This surge was including the close to 10.6 percent increase that the stock posted during trading on December 3. The stock price at the end of trading on last Friday was at $58.02 per share, which is 2.2 percent above its prior 52 week high price point of $56.75 per share and a huge 344 percent above its prior 523 week low price point.
The significant increase in the valuation of the stock over the past couple of days is being ascribed to investors increasing their bets on Chinese online companies in order to benefit from the double digit sequential growth that these firms have been consistently posting over the past few quarters. This small cap Chinese social media firm has managed to post a net income of $236 million in the past 12 months from total sales of $244 million in the same period. Thanks to the buoyant growth in the revenue of the firm, the share of the insider holding in the stock has gone up by a huge 399.5 percent in the past six months. In the same period the share holders in the firm have seen their valuations go up by a huge 307 percent.