Joyy shares drop as main revenue app, Bigo Live, gets removed from app stores

Investing.com -- 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 (NASDAQ:GOOGL ) Play Store and App Store. The removals took place in early December. Short seller Wolfpack Research has pointed out that Joyy has yet to inform its shareholders about this considerable setback.

Bigo Live, which reportedly contributes to 89% of Joyy's revenue, was taken down following a New York Times (NYSE:NYT ) 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 resulted in negative sentiment among investors, leading to 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 latest incident presents challenges for Joyy as it maneuvers 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 brings in for the company. Investors and analysts will be keenly observing Joyy's actions to lessen the fallout and any forthcoming statements from the company regarding the impact on its financial performance.

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Source: Investing.com