YY Inc (YY): Today's Featured Internet Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

YY ( YY) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.1%. By the end of trading, YY fell $2.96 (-4.4%) to $63.64 on heavy volume. Throughout the day, 4,943,045 shares of YY exchanged hands as compared to its average daily volume of 2,297,100 shares. The stock ranged in price between $57.53-$66.59 after having opened the day at $65.39 as compared to the previous trading day's close of $66.60. Other companies within the Internet industry that declined today were: ChinaNet Online Holdings ( CNET), down 16.9%, LiveDeal ( LIVE), down 10.4%, China Finance Online ( JRJC), down 8.5% and Autohome Inc ADR ( ATHM), down 7.7%.

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. YY has a market cap of $3.6 billion and is part of the technology sector. Shares are up 32.5% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate YY a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates YY as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

On the positive front, Twitter ( TWTR), up 11.4%, Tremor Video ( TRMR), up 5.5%, Borderfree ( BRDR), up 5.5% and Net Element ( NETE), up 4.9% , were all gainers within the internet industry with LinkedIn ( LNKD) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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