Why DouYu International Holdings Ltd (DOYU) is Surging in 2025
The communication services sector has been one of Wall Street's most dynamic performers so far this year. The sector has a lot of breadth and encompasses everything from traditional telecom giants to digital advertising platforms and streaming entertainment providers, so the sector hardly moves in tandem.
What makes this sector particularly intriguing is how different subsegments are thriving for entirely different reasons. Tech-oriented communication stocks have capitalized on AI, whereas telecom stalwarts have found strength through 5G network expansion, which is finally becoming the dominant communication standard this year.
Understanding these market leaders provides both defensive positioning opportunities and exposure to some of the most innovative companies.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article.
For this article, I screened the best-performing communication services stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A close-up of a computer monitor, highlighting the interactive gaming experience.
Number of Hedge Fund Holders In Q4 2024: 8
DouYu International Holdings Ltd (NASDAQ:DOYU) operates one of China's largest live-streaming platforms focused on gaming, eSports, and interactive entertainment, connecting developers, teams, advertisers, and millions of viewers.
The biggest catalyst was the March 14, 2025, release of fourth quarter and full year 2024 results, which highlighted a sharp rise in revenue from DouYu's 'innovative business, advertising, and others' segment. It is now up 63.6% to RMB1.2 billion and 28% of total revenue.
DouYu also declared a second $300 million special cash dividend in January 2025 and executed a $20 million share repurchase, signaling confidence in its financial stability and commitment to shareholder returns.
The consensus price target of $12.75 implies 87.5% upside.
DOYU stock is up 58.70% year-to-date.
Overall, DOYU ranks 8th on our list of communication services stocks that are up the most so far in 2025. While we acknowledge the potential of DOYU, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DOYU but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
