Xunlei Skyrockets 28.31%—What Hidden Catalysts Ignited This Explosive Move?

Summary
• Xunlei’s stock surged 28.31% intraday, hitting $6.74, driven by a 30.6% Q2 revenue jump to $104M.
• A $720M unrealized gain on its Arashi Vision (Insta360) investment propelled net income to $727.4M.
• Strategic acquisitions like Hupu and Q3 revenue guidance of $120M signaled aggressive growth.

On August 15, 2025, Xunlei (XNET) delivered one of the most electrifying intraday performances in recent memory, surging 28.31% to $6.74. The stock’s meteoric rise was fueled by a blockbuster Q2 earnings report, strategic acquisitions, and a $720M windfall from its Arashi Vision investment. With a 52-week high of $7.186 just 6% away, the market is now scrambling to decipher whether this is a short-lived rally or the start of a new bull phase.

Q2 Earnings and Strategic Windfall Ignite Xunlei’s Surge
Xunlei’s 28.31% intraday rally was catalyzed by a 30.6% year-over-year revenue jump to $104 million, driven by 85.5% growth in live-streaming and 10.5% in subscriptions. The $720M unrealized gain on its Arashi Vision (Insta360) investment—stemming from the latter’s June IPO—exploded net income to $727.4M, a 289,900% increase from $2.5M in Q2 2024. Additionally, the acquisition of Hupu and Q3 revenue guidance of $120M signaled aggressive expansion, with management emphasizing cloud computing recovery and international market penetration as key drivers. These factors collectively triggered a surge in investor optimism, reflected in the stock’s 12.9% move above its 52-week low of $1.51.

Interactive Media Sector Quiet as Xunlei Defies Trends
Options and Technicals: Capitalizing on Xunlei’s Momentum
• MACD: -0.0235 (bullish divergence), Signal Line: -0.0356, Histogram: 0.0120 (positive momentum)
• RSI: 52.14 (neutral), Bollinger Bands: $4.2457–$5.1493 (price at 4.6975, near middle band)
• 200D MA: $3.6463 (well below current price), 30D MA: $4.6602 (support near $4.4564)

Xunlei’s technicals suggest a short-term bullish trend, with the stock trading above its 30D and 100D moving averages. The RSI at 52.14 indicates no overbought conditions, while the MACD histogram’s positive divergence hints at sustained momentum. Key support lies at $4.4564–$4.4708 (30D), and resistance at $7.186 (52W high).

Top Options Picks:
• XNET20250919C6 (Call, $6 strike, 2025-09-19):
- IV: 90.65% (high volatility)
- Delta: 0.6697 (moderate sensitivity)
- Theta: -0.0133 (rapid time decay)
- Gamma: 0.1957 (high sensitivity to price swings)
- Turnover: $52,942 (liquid)
- Leverage Ratio: 6.50%
- Payoff (5% upside): $0.22 per share (max(0, $6.804 - $6))
This contract offers high gamma and IV, ideal for capitalizing on short-term volatility. Its moderate delta balances risk and reward, while high turnover ensures liquidity.

• XNET20251219C7 (Call, $7 strike, 2025-12-19):
- IV: 69.40% (reasonable volatility)
- Delta: 0.5242 (moderate sensitivity)
- Theta: -0.0050 (slower decay)
- Gamma: 0.1496 (moderate sensitivity)
- Turnover: $12,598 (liquid)
- Leverage Ratio: 7.22%
- Payoff (5% upside): $0.304 per share (max(0, $6.804 - $7))
This contract balances time decay and gamma, offering exposure to a potential $7.186 52W high test. Its lower IV compared to the September contract reduces cost while retaining upside potential.

Action: Aggressive bulls may consider XNET20250919C6 for a short-term play on volatility, while XNET20251219C7 suits those targeting a sustained move above $7.00.

Backtest Xunlei Stock Performance
The backtest of XNET's performance after a 26% intraday surge shows mixed results. While the 3-day win rate is 50%, the 10-day win rate is lower at 47.86%, and the 30-day win rate is 48.22%. This suggests that XNET tends to experience short-term volatility following a significant intraday gain.

Xunlei’s Surge: A Catalyst-Driven Rally with High Gamma Potential
Xunlei’s 28.31% intraday surge is a textbook example of a catalyst-driven rally, fueled by earnings, strategic windfalls, and aggressive guidance. While the stock’s technicals and options chain suggest continued momentum, investors must monitor the 52W high of $7.186 and the 200D MA at $3.6463 as critical benchmarks. The sector leader, Netflix (NFLX), rose 0.65%—a muted performance compared to Xunlei’s fireworks—highlighting the stock’s standalone potential. For those seeking leverage, the XNET20250919C6 and XNET20251219C7 options offer high gamma and liquidity to capitalize on near-term volatility. Watch for a $7.186 52W high test or regulatory reaction to the Arashi Vision windfall.