DOYU, US25985W2044

Citigroup cuts target for DouYu stock from USD 5.20 to USD 5.00

Published on 10/07/2026 at 02:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

DouYu reported RMB 981.1 million revenue and a RMB 72.4 million loss in the second quarter. DouYu stock had 45.4 million monthly active users.

DOYU, US25985W2044, Illustration mit AI erstellt.

Citigroup cut its target for DouYu stock from USD 5.20 to USD 5.00 on August 24, 2026, according to Webull. The reduction amounts to 3.85 percent and came with a maintained Neutral rating, giving investors a concrete valuation reference for the Nasdaq-listed Chinese livestreaming company.

Revenue declines in second quarter

DouYu reported total net revenue of RMB 981.1 million for the second quarter ended June 30, 2026, down 6.90 percent from the same period a year earlier, according to The Globe and Mail. Livestreaming revenue fell 13.00 percent to RMB 503.0 million, while innovative business, advertising and other revenue edged up 0.40 percent to RMB 478.1 million.

The mix shows why the target cut matters. Cost optimization lifted gross profit 12.00 percent to RMB 159.0 million and raised gross margin to 16.20 percent, but branding and content-event spending more than doubled sales and marketing expenses.

Loss weighs on operating picture

DouYu posted an operating loss of RMB 21.3 million and a net loss of RMB 72.4 million in the second quarter, reversing the profit reported a year earlier. The result puts monetization and spending discipline at the center of the company story, especially after the quarter included the DouYu Carnival and other proprietary content programs.

User engagement offered a counterweight. Average livestreaming monthly active users reached 45.4 million, up 2.60 percent sequentially, while paying livestreaming users fell to 2.3 million and average revenue per paying user was RMB 283.

Market value and trading range

DouYu held USD 2.1 billion in cash and cash equivalents on June 30, 2026, while its market capitalization was USD 129.8 million on October 6, 2026. The 52-week range was USD 4.18 to USD 7.55 on that date, placing the equity in a small-cap segment where quarterly revenue trends and cash deployment can materially shape valuation.

The company therefore presents two contrasting signals: stronger gross economics and user engagement on one side, and lower revenue with a quarterly loss on the other. Citigroup's USD 5.00 target, dated August 24, 2026, sits below its earlier USD 5.20 target and keeps the financial recovery question central to the stock narrative.

Cash and monetization set the next test

For investors, the most important comparison is between the RMB 159.0 million gross profit and the RMB 72.4 million net loss in the second quarter. DouYu's cash balance provides a substantial financial cushion, but the figures also show why revenue stabilization and disciplined marketing spending matter more than user scale alone.

The further course of trading is shown by the continuously updated real-time quote of DouYu stock.