JOYY's Dual Growth Engine Strategy and Shareholder Return Momentum

JOYY Inc. (JOYY) has emerged as a compelling investment opportunity in the global tech landscape, driven by two distinct yet interconnected engines: its AI-powered monetization strategies and a robust shareholder return program. With a $3.32 billion net cash position as of September 30, 2025 according to financial reports, the company is uniquely positioned to execute on both fronts, creating a virtuous cycle of growth and value creation.

AI-Driven Monetization: A Catalyst for Sustainable Growth

JOYY's strategic integration of artificial intelligence (AI) into its monetization framework has unlocked new revenue streams and enhanced user engagement. The company's advertising technology segment, led by its AI-powered programmatic platform BIGO Ads, delivered 29.2% year-over-year revenue growth to $112.5 million in Q3 2025. This success stems from advanced machine learning models, including real-time bidding and oCPC/ROAS optimization, which enable advertisers to scale user acquisition while maintaining cost efficiency. For instance, the upgraded IAA D7 ROAS optimization feature in Q3 allowed brands to acquire higher-quality users, directly boosting ad spend.

Beyond advertising, JOYY has leveraged AI-generated content (AIGC) to diversify its revenue base. In October 2025, AI-powered interactive virtual gifts accounted for 25% of total virtual gift consumption across platforms like Bigo Live. These localized, AI-driven gifts not only enhance user experience but also drive higher spending per user. Additionally, AI improvements in content distribution and payment experiences have extended user viewing time, a critical metric for monetizing live streaming.

The company's cross-regional and cross-industry data analytics further amplify its AI capabilities. By applying predictive modeling and automated optimization to user behavior and attrition data, JOYY has scaled its third-party SDK network traffic by 228% year-over-year, significantly expanding its advertising reach. This technical edge positions JOYY to capitalize on the growing demand for programmatic advertising in emerging markets.

Shareholder Returns: A Commitment to Value Distribution

JOYY's financial discipline is equally impressive. The company has already distributed $147.9 million in dividends and repurchased shares worth $88.6 million through year-to-date buybacks under its $900 million shareholder return program (2025–2027) according to earnings disclosures. These actions reflect a clear commitment to rewarding investors, supported by its strong liquidity position.

The $900 million program is not just a one-time gesture but a strategic allocation of capital. With a $3.32 billion net cash position, JOYY has the flexibility to sustain these returns while reinvesting in high-margin AI initiatives. CEO Ting Li emphasized this balance during Q3 earnings, stating the company's focus on "delivering sustainable returns to shareholders". This dual focus-reinvesting in growth while returning capital-creates a resilient business model.

A Compelling Investment Case

JOYY's Q3 results underscore its momentum. Total revenue hit $540.2 million, a 6.4% sequential increase, with non-livestreaming revenue (ads and other services) rising 27.3% year-over-year. The company also provided Q4 guidance of $563–578 million in net revenue according to market analysis, signaling continued recovery and growth.

For investors, the combination of AI-driven monetization and disciplined capital returns is rare. JOYY's ability to innovate in AI-whether through AIGC virtual gifts, programmatic advertising, or user engagement tools-ensures long-term revenue diversification. Meanwhile, its shareholder return program, backed by a fortress balance sheet, provides immediate value.

Conclusion

JOYY Inc. exemplifies the modern tech company: one that leverages cutting-edge AI to drive growth while maintaining a strong commitment to shareholder value. As the company continues to refine its AI monetization strategies and execute on its $900 million return program, it presents a compelling case for investors seeking both innovation and financial prudence. With its dual engines firing on all cylinders, JOYY is well-positioned to deliver outsized returns in the years ahead.