Sep. 4 at 4:44 PM
$TUYA is one of the more mispriced small-cap AI/IoT names I’ve found. At roughly a
$1B market cap, Tuya has nearly
$1B in cash, deposits and Treasury securities while the operating business is already profitable.
Q2 revenue grew 16% to
$92.9M, PaaS grew 16.9%, GAAP operating margin reached 10%, and net income was
$18.6M. Premium PaaS customers continue growing and represent nearly 90% of PaaS revenue.
This is not a pre-revenue AI story hoping something eventually works. The core business works now, the balance sheet provides substantial downside protection, and AI/physical-AI adoption gives additional upside.
Main risks are China valuation discount, declining gross margin, and whether AI initiatives translate into meaningful incremental revenue.
At these levels, I think the market is assigning surprisingly little value to the actual operating business.
