Momo Inc. operates as a mobile-based social networking platform in the People's Republic of China. The company's platform includes its Momo mobile application and various related features, functionalities, tools, and services that are provided to users, customers, and platform partners. Its Momo mobile application enables users to establish and expand their social relationships based on locations and interests. The company also offers games, which are designed with various themes, cultural characteristics, and features to appeal to various segments of the game player community; and paid emoticons and mobile marketing services. The company was formerly known as Momo Technology Company Limited and changed its name to Momo Inc. in July 2014. Momo Inc. was founded in 2011 and is headquartered in Beijing, the People's Republic of China.
Here's Why Momo Stock Is Spiking Today NEW YORK (TheStreet) -- Momo (MOMO - Get Report) stock is skyrocketing 34.14% to $16.15 on heavy trading volume this afternoon after Alibaba (BABA) affiliates joined the group seeking to buy out the Beijing-based social network. Momo CEO Yan Tang initially proposed the buyout in June, a mere six months after the company raised $248 million in its December 2014 IPO, Bloomberg reports.
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After Momo reported its Q1 results, its stock price increased 11%. The company recorded a 64% year-on-year revenue growth and increased Q2 guidance from $470M to $485M. However, its mobile games revenue declined to $6.6M (-43% year-over-year because of the loss of paying users).
Earlier this year, MOMO acquired China's top dating app Tantan, the "Tinder of China," which seems to be a very promising acquisition. Despite the astronomical growth, Momo still has a Forward P/E of 12, at the low end of the P/E spectrum for such growth. The company as an established record of beating earnings estimates--the average surprise for the past two quarters was 20%.
