Stock in Focus: Momo Inc. (MOMO)

Company Profile:

Momo Inc. operates a mobile-based social and entertainment platform in the People’s Republic of China. It operates Momo platform that includes its Momo mobile application, as well as various related properties, features, functionalities, tools, and services to users, customers, and platform partners. 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.

Recent News:

The company reported net revenues decreased by 3.5% year over year to RMB3,594.1 million ( US$507.6 million) in the first quarter of 2020. Net income attributable to Momo Inc. increased to RMB538.9 million ( US$76.1 million ) in the first quarter of 2020 from RMB289.3 million in the same period of 2019.

The company reported net revenues of fourth quarter 2019 increased by 22% year over year to RMB4,687.9 million ( US$673.4 million). Net revenues increased 27% year over year to RMB17,015.1 million ( US$2,444 .1 million) for the full year of 2019.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MOMO’s strengths can be seen in its strong growth, better profitability and robust efficiency compared with its peers. Its revenue and net income have increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI stands at 47.45 with positive bias. We rate Momo Inc. (MOMO) a STRONG BUY.

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