Joyy Inc Faces Setback with Bigo Live Removal

Shares of Joyy Inc (NASDAQ:YY) experienced a 3.5% drop after reports emerged that its primary revenue-generating app, Bigo Live, was removed from both the Google Play Store and App Store. The removals occurred in early December.

Short seller Wolfpack Research pointed out that Joyy has yet to inform shareholders about this considerable setback.

Bigo Live, which reportedly contributes to 89% of Joyy's revenue, was taken down following a New York Times report that unveiled incidents of child abuse on the platform. In a statement issued to Hunterbrook Media, Joyy acknowledged the removal and stated that the company is "actively collaborating with relevant authorities to rigorously and effectively combat violations."

This recent event has led to negative sentiment among investors, resulting in a dip in Joyy's stock price. Hunterbrook Capital, which reported on the issue, has taken a short position in Joyy Inc, signaling a wager against the stock's future performance.

This incident presents challenges for Joyy as it navigates the regulatory landscape and works to address the issues that led to the app's removal. The financial impact of these app store removals could be significant, given the substantial portion of revenue Bigo Live generates for the company. Investors and analysts will closely observe Joyy's actions to mitigate fallout and any forthcoming statements regarding the impact on its financial performance.

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