Xunlei Announces $20M Stock Buyback -- What's Next - iQIYI (NASDAQ:IQ), Xunlei (NASDAQ:XNET)

Xunlei announces a $20M stock buyback as investors look for momentum in the online video sector and for clearer reasons to buy the shares. The company said it will repurchase up to $20 million worth of stock, which coincided with a one-day rally. Xunlei is holding significant cash and has made a major investment that, together, are described as worth more than double its market value. The company is also pursuing international livestreaming, which has been expanding faster than its subscription business focused largely on viewers in China. In the first quarter, livestreaming revenue rose 89% year over year to $53.6 million, helped by its June acquisition of Hupu, a sports media and data provider. However, it warned growth may slow after a period of rapid expansion. At its latest close of $5.36, Xunlei trades at a P/E of 18 versus 8 for Kuaishou, while iQiyi and Huya are losing money.