Shares of Chinese game-streaming company Huya Inc. HUYA, -14.23% are down 15% in Tuesday morning trading after the company posted in-line results, but analysts said that the company's margins may be a concern in the near future. "Increased marketing expense in SE Asia and eSports content acquisition (e.g. exclusive broadcasting of LCK Summer) may cause near-term margin pressure," Jefferies analyst Karen Chan wrote in a note about YY, which spun off Huya earlier this year. Benchmark analyst Fawne Jiang expects the company to "maintain robust growth momentum given the significant opportunities in game live streaming and e-sports" but also predicts that rising content costs and marketing could hit margins. Huya shares are down 24% over the past month, while the S&P 500 SPX, +0.61% has gained 1%.
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