#4 - Momo, Inc. (NASDAQ:MOMO)
Momo, Inc. (NASDAQ: MOMO) - Data is the coin of the realm in the 21stcentury, and Momo clearly has an app for that. The company issued its first initial public offering (IPO) in 2014 and they haven’t looked back. The social networking giant has a mobile app that allows users to find and meet people with similar interests and who are near them. They were already the second-largest dating app in China when they acquired Tantan, a Chinese cousin to Tinder and the largest dating app in China. This combination of the top two dating sites in China bodes well for investors who are looking to profit as China looks to make online dating more acceptable.
But where Momo is experiencing truly extraordinary growth is in the era of live-streaming videos. As the name suggests, this is where users stream a live broadcast of themselves and get paid for it in the form of “gifts” from the App Store or Google Play. The "e-tailers" pocket 30% of the gift with the remaining 70% being divided between Momo and the broadcasters. It's a comparable revenue stream to in-app video game purchases. And for Momo, the revenue it receives from these videos accounts for 83% of the $494 million revenue it reported in its latest quarterly earnings.
And their base of paid subscribers, not including Tantan, is up year-over-year by 1.4 million. This is important since Momo is already proving very adept at monetizing their customer base.
Their second-quarter results were further evidence of their strength. Non-GAAP earnings-per-share (EPS) was $0.66, a $0.05 increase over analysts’ projections and an 88.5% year-over-year increase from 2017. GAAP EPS was also up 89% year-over-year. Revenue followed suit, growing year-over-year by 58.3% to $494.27 million.
About Hello Group
Hello Group Inc provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names.
Read More - Current Price
- $6.07
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $16.00 (163.6% Upside)
