Xunlei plans a $20 million stock buyback backed by $304 million in cash and a 7.8% Arashi Vision stake valued near 4.1B yuan, well above its ~$350 million market cap. The overseas livestreaming engine drove 89% YoY growth to $53.6 million in Q1, though margins declined. The catalyst could support a near-term rally; longer-term gains hinge on sustainable overseas expansion and profitability.
Xunlei's revenue rose 30.6% in Q3, driven by livestreaming services growth. Stock surged over fivefold in a year, with a 96% rise recently. Acquisition of Hupu reflects strategy to target overseas livestreaming markets. Significant gains reported from Arashi Vision investment boost confidence. Company's growth potential remains in livestreaming, targeting overseas Chinese speakers.