Economic Observation Network Huya has recently promoted its new business transformation, with an increase in the proportion of new business revenue in the first quarter and a slight rise in stock price. The sustainability of the transformation has attracted market attention.

Performance and business situation:
According to a report on July 2nd, Huya's "second curve" (new businesses such as game ecosystem services) has climbed to 36.3% of revenue in Q1 2026, but live streaming revenue has declined by 3.27% year-on-year Transformation leads to cost increase, Q1 non GAAP net profit decreased by 12.08% year-on-year The key controversy lies in the high dependence of new business growth on Tencent, and the disappearance of the User Growth Index (MAU) from the financial report, suggesting a possible bottleneck 。

Stock price and fund performance:
In the past week (July 2-9), its US stock price range rose by 3.72%, and the latest closing price was $2.51. On a technical level, the stock price fell after hitting the upper limit of the Bollinger Bands on July 9th ($2.536), and the KDJ indicator showed a short-term oversold zone (J value>100). In terms of institutions, 75% of them gave a "buy or hold" rating in July, with a target average price of $3.95, which has a potential space of about 57% compared to the current price.

Future Development:
The current market is trading the "possibility" of its transformation, but it needs to verify whether the growth rate of new businesses can continue to offset the decline in live streaming. The risk lies in excessive reliance on a single shareholder and stagnant user growth.

The above content is based on publicly available information and does not constitute investment advice.