One relatively obscure social media stock has quietly surged over the past year, and JPMorgan believes the rally may have much further to run.

JPMorgan upgraded JOYY Inc. (NASDAQ: JOYY) from Neutral to Overweight and dramatically raised its price target to $98 from $35. Based on Tuesday’s closing price of $73.41, the new target implies roughly 33% additional upside.

The reason goes beyond growth in social media. JPMorgan believes JOYY’s enormous cash position and aggressive shareholder-return strategy could turn the company into an increasingly attractive stock for U.S. investors.

JPMorgan Sees More Upside After a 46% Rally

JOYY is hardly a household name in the United States, but its stock has been difficult to ignore lately. Shares have climbed roughly 46% over the past year, significantly outperforming many other publicly traded Chinese internet companies.

JPMorgan analyst Daniel Chen believes the company’s shareholder returns have played a major role in that performance.

“JOYY’s share price has substantially outperformed [publicly traded Chinese internet-related companies] since Jan 2025 … due to sizable shareholder returns,” Chen wrote in a note to clients Wednesday. “We expect more share price upside from here.”

The upgrade sent JOYY shares more than 2% higher in premarket trading Wednesday.

JPMorgan’s new $98 price target represents one of the more bullish calls on the stock and is a massive increase from the bank’s previous $35 target.

The Social Media Company Most Americans Have Never Heard Of

JOYY traces its roots to China in the early 2000s and today operates a collection of social media, livestreaming and digital entertainment businesses around the world.

Its best-known platforms include Bigo Live, a global livestreaming platform, and Likee, a short-form video and social media app.

That gives JOYY exposure to some of the same global trends that have powered larger social media companies: short-form video, livestreaming, creator content and digital advertising.

But JPMorgan’s bullish argument isn’t primarily based on JOYY suddenly becoming the next TikTok or Instagram. The company’s balance sheet may be the bigger attraction.

JOYY Is Sitting on $3.2 Billion in Net Cash

At the end of the first quarter of 2026, JOYY had approximately $3.2 billion in net cash, according to JPMorgan.

That represented an extraordinary 84% of the company’s market capitalization.

For investors, that matters because JOYY isn’t relying solely on future revenue growth to justify its valuation. The company already has a huge financial cushion that can potentially be returned to shareholders through dividends and share repurchases.

JOYY also generates substantial cash flow from its operations and interest income.

“JOYY has sizable net cash (US$3.2bn in [the first quarter of 2026], or 84% of market cap) and generates rich cash flow from both daily operation and interest income,” Chen wrote.

JPMorgan believes that financial strength gives JOYY enough capital to continue rewarding investors for years.

A 15% Annual Shareholder Return Target Changes the Equation

The biggest catalyst may be a shareholder-return policy JOYY announced in May.

The company is targeting an annual shareholder return of approximately 15%, according to JPMorgan.

That’s unusually aggressive, particularly for a relatively small technology and social media company. If JOYY can consistently deliver returns at or near that level through dividends and buybacks, JPMorgan believes the stock could attract significantly more attention from U.S. investors.

That could create a powerful combination: investors receive substantial capital returns while increased demand potentially pushes the stock price higher.

JPMorgan also believes JOYY has enough financial firepower to keep the strategy going beyond the next couple of years.

“Therefore, it has sufficient capital to maintain a sustainable shareholder return beyond 2028,” Chen said.

For investors who normally associate social media stocks with aggressive spending and expensive valuations, JOYY presents a very different proposition.

Advertising Could Become the Second Growth Engine

Shareholder returns aren’t JPMorgan’s only reason for upgrading the stock.

The bank also sees potential growth from advertising across JOYY’s digital platforms, particularly Bigo Ads.

Programmatic digital advertising remains an enormous global market, and JPMorgan believes JOYY can capitalize on the technology and user data it has accumulated across Bigo, Likee and its other digital businesses.

“We are positive on Bigo Ads’s growth outlook supported by sizable programmatic ads market and JOYY’s strong data/algorithm know-how in digital entertainment/eCommerce verticals,” Chen wrote.

If advertising revenue accelerates while JOYY continues returning significant amounts of capital to shareholders, investors could effectively get two potential catalysts at the same time.

Wall Street Is Already Overwhelmingly Bullish

JPMorgan isn’t alone.

Of the 14 analysts covering JOYY, 12 currently rate the stock Buy or Strong Buy, according to LSEG data. Five have Strong Buy ratings, seven rate it Buy and two recommend holding the shares. None currently have an Underperform or Sell rating.

The broader analyst consensus, however, is less aggressive than JPMorgan’s new call.

LSEG data showed an average price target of approximately $79.09, compared with JOYY’s Tuesday closing price of $73.41. JPMorgan’s new $98 target therefore puts the investment bank well above the broader Wall Street consensus.

That distinction is important. JOYY has already risen substantially, so JPMorgan is effectively arguing that the combination of cash, shareholder returns and advertising growth has still not been fully reflected in the stock price.

Why JOYY Is Suddenly Worth Watching

JOYY is an unusual technology investment.

The company operates in the fast-moving social media and livestreaming industry, yet JPMorgan’s bullish thesis resembles something investors might normally hear about a mature cash-generating business.

JOYY has $3.2 billion in net cash, strong cash generation and a policy targeting a 15% annual shareholder return. At the same time, its advertising business provides a potential avenue for continued operating growth.

There are still risks. JOYY operates internationally and has roots in China, exposing investors to regulatory, geopolitical and currency uncertainty. Its shares have also already climbed roughly 46% over the past year, meaning investors buying today aren’t getting the valuation available before the rally.

Still, JPMorgan believes the company’s financial strength can support shareholder returns well beyond 2028, while advertising growth provides another potential catalyst.

With the bank now targeting $98 per share, JOYY has gone from an under-the-radar social media company to a stock investors may want to keep on their radar.