Momo Inc. (MOMO): reasons to be upbeat about the stock

8:50 am ET, 29 May 2018

Momo (NASDAQ: MOMO) gained 11% today on Q1 results that beat EPS and revenue estimates.  The company recorded a 64% year-on-year revenue growth and increased Q2 guidance from $470M to $485M.

What can you expect now?

S&P Capital IQ indicates solid valuation, quality and growth stability of the MOMO stock.  

The only area where Momo underperforms is financial health (the company is viewed as "less healthy").  Financial health uses fundamental data to view the company’s debt and interest obligations (among other factors) to its financial health in comparison to its peers.

The key metrics for MOMO are looking healthy

  • The number of Monthly Active Users (MAU) is at 103.3M (added 18M since last year); 
  • The number of total paying users of live video service is at  8.1M (+1.1M since last year); 
  • Total live video services revenue is at $371.5M (+75% year-over-year);
  • However, mobile games revenue declined to $6.6M (-43% year-over-year because of the loss of paying users); 

Over the last year, MOMO returned -0.49%. This return is lower than Internet Software & Services sector (8.19%), Technology industry (17.86%), and S&P 500 (12.65%) returns.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Momo Inc. (MOMO) Stock Guide

Updated at: 12:39 pm ET, 12 Jul 2020

Before we start: if you're looking for MOMO stock price, you can quickly find it out by visiting Finny and typing "MOMO quote". If you're looking for a quick scoop on MOMO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MOMO". You'll get all this info in one place. Or you can just type "MOMO news" to get the latest stock news.

Looking to buy or sell Momo Inc. (MOMO)? Interested in getting the full scoop on MOMO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MOMO stock guide, we'll address key questions about MOMO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MOMO earnings?
2. When is MOMO earnings date?
3. What is MOMO stock forecast (i.e., prediction)?
4. MOMO buy or sell? What is MOMO Finny Score?
5. What are the reasons to buy MOMO? Why should I buy MOMO stock?
6. What are the reasons to sell MOMO? Why should I sell MOMO stock?
7. What are MOMO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MOMO earnings?

MOMO trailing 12-month earnings per share (EPS) is $2.04.

2. When is MOMO earnings date?

MOMO earnings date is August 25, 2020.

Analyst Predictions

3. What is MOMO stock forecast (i.e., prediction)?

Based on MOMO analyst price targets, MOMO stock forecast is $32.05 (for a year from now). That means the average analyst price target for MOMO stock is $32.05. The prediction is based on 16 analyst estimates.

The low price target for MOMO is $26.04, while the high price target is $45.08.

MOMO analyst rating is Buy.

Analysis

4. MOMO buy or sell? What is MOMO Finny Score?

#{finnyScore:86}Our quantitative analysis shows 6 reasons to buy and 1 reason to sell MOMO, resulting in Finny Score of 86.

5. What are the reasons to buy MOMO? Why should I buy MOMO stock?

Here are the reasons to buy MOMO stock:

  • MOMO quarterly revenue growth was 22.00%, higher than the industry and sector average revenue growth (1.75% and 1.51%, respectively). See MOMO revenue growth chart.
  • MOMO profitability is improving. The YoY profit margin change was 24.17 percentage points. See MOMO profitability chart.
  • MOMO forward P/E ratio is 6.87, which is low compared to its industry peers’ P/E ratios. See MOMO forward P/E ratio chart.
  • MOMO PEG ratio (P/E adjusted for growth) is 27.23, which is low compared to its industry peers’ PEG ratios. See MOMO PEG chart.
  • MOMO average analyst rating is Buy. See MOMO analyst rating chart.
  • MOMO average analyst price target ($32.05) is above its current price ($20.92). See MOMO price target chart.

6. What are the reasons to sell MOMO? Why should I sell MOMO stock?

Let's look at the reasons to sell MOMO stock (i.e., the bear case):

  • MOMO short interest (days to cover the shorts) ratio is 1.69. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MOMO short interest ratio chart.

Key Stats

7. What are MOMO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MOMO:

Metrics MOMO
Price $20.11
Average Price Target / Upside $32.05 / 59.33%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Internet Content & Information
Sector Technology
Number of Employees 1,244
Market Cap $4.37B
Forward P/E Ratio 6.87
Price/Book Ratio N/A
Revenue (TTM) N/A
YoY Quarterly Revenue Growth 22.00%
Profit Margin 17.46%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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