JOYY’s stock bounces after company refutes short-seller report that prompted a price plunge

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Shares of JOYY Inc. bounced 13.5% in premarket trading Thursday, after the China-based social media company issued a statement refuting a bearish report from short seller Muddy Waters that prompted a plunge in the previous session. “Yesterday, Muddy Waters issued a short seller report on JOYY, causing anxiety and market disturbance, leading to abnormal share price movements,” the company said in a statement. “The company believes that the report contains numerous errors, unsubstantiated statements, and misleading conclusions and interpretations regarding information relating to the company.” The stock tumbled 26.5% on Wednesday, after Muddy Waters Research said it believed that JOYY’s video-based entertainment live streaming business YY Live is “almost entirely fake,” and said Baidu Inc.’s announcement earlier this week a deal to buy YY Live for $3.6 billion in cash was surreal. In response, JOYY said Muddy Waters’ report showed a “lack of basic understanding of the live streaming industry in China.” JOYY’s stock has rallied 39.5% year to date through Wednesday, while the iShares MSCI China ETF has advanced 24.6%. S&P 500 has gained 10.4%.
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