Joyy Shares Drop Following Removal of Main Revenue App Bigo Live from App Stores

Investing.com -- Joyy Inc (NASDAQ:YY) shares fell by 3.5% following reports that its main revenue source, the Bigo Live application, was removed from both the Google Play Store and the App Store. The removal of the applications occurred in early December. Short-seller Wolfpack Research pointed out that Joyy had not yet informed its shareholders about this significant development.

Bigo Live, which is reported to account for 89% of Joyy's revenue, was removed following a New York Times article that uncovered instances of child exploitation on the platform. In a statement to Hunterbrook Media, Joyy acknowledged the removal of the application and stated that the company is "actively cooperating with relevant authorities to combat violations rigorously and effectively."

This recent incident has led to a negative perception among investors, resulting in a decline in Joyy's stock price. Hunterbrook Capital, reporting on the issue, indicated that it had taken a short position in Joyy Inc, suggesting a bet against the future performance of the stock.

This latest development poses challenges for Joyy in navigating the regulatory landscape and addressing the issues that led to the removal of the application. Considering that Bigo Live is a significant revenue source for the company, the financial impact of its removal from app stores could be substantial. Investors and analysts will closely monitor the actions Joyy takes to mitigate negative effects and any statements regarding the impact on the company's financial performance.