Why Huya Stock Was Falling Today
Shares of Huya (NYSE: HUYA) were down 10.9% as of 1:13 p.m. ET on Wednesday after receiving an analyst downgrade following its third-quarter earnings report.
A weak economic environment in China has weighed on Huya's operating results this year. Year to date, the stock has fallen 59%, and Citigroup analyst Brian Gong sees more headwinds in the near term.
In the third quarter, Huya reported a 20% year-over-year drop in revenue, which translated to an adjusted loss on the bottom line. The analyst sees higher content costs further weighing on financial results. As a result, Gong downgraded the stock to a sell rating with a $3 price target.
Source Fool.com
