Tuya’s 2026 Outlook: Software Strategy Drives Sustained Margin Expansion
When a developer wants to link a smart light bulb to a home thermostat without writing a single line of messy custom code, they often turn to a cloud-based platform to handle the heavy lifting. Tuya (NYSE:TUYA) owns that infrastructure, operating a massive cloud-agnostic platform that serves as the connective tissue for millions of smart devices worldwide.
While the stock has struggled, falling 34% over the past year to its current price of $1.72 as of Oct. 6, 2026, the underlying business has fundamentally changed from a loss-making hardware distributor to a profitable software-driven player.
Our proprietary Hidden Gems scoring system assigns Tuya an overall Superscore of 76 out of 100, placing it in the Strong category. The Superscore is an AI-powered metric that evaluates a company’s overall strength by combining financial performance, product-market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.