Stock Price Prediction

Tuya Inc. (TUYA) is currently undervalued, trading at $1.74, with a target price of $3.20 based on a 5.1x P/S multiple on 2025E revenue of $356M. The company has shown strong financial performance, including a 33.6% YoY revenue increase in Q3 2024, driven by IoT PaaS and smart solutions growth. Recent strategic investment by 65 Equity Partners further supports its expansion plans, making it an attractive opportunity for bullish investors.

TUYA stock closed at $2.48 on January 31, 2025, down 1.59% during regular trading and further declined to $2.46 in after-hours trading. The bearish view stems from its weak momentum, with the stock trading below key resistance levels and facing challenges despite recent strategic investments and improved financials. Additionally, its valuation remains discounted, but inconsistent profitability and competitive pressures weigh on its outlook.