Hello Group Inc.Long
Here I reveal all the dirty secrets about MOMO! 🐯
Hi everyone, Yurii Domaranskyi here.
Today I want to talk about MOMO, its fundamentals, and the overall technical picture!
Hello Group (listed on NASDAQ:MOMO) holds two dating apps Momo and Tantan. The company is often called the ‘Tinder of China’. Momo connects people and facilitates social interactions based on location. While Tantan is designed to help its users find and establish romantic connections.
Here are some important ratios:
Market Cap 1.14B
P/B 0.72
Debt/Eq 0.43
Short Float 11.55% according to finviz
Short Float 6.26% according to fintel
As of today.
Positive about the company: While the company’s overall revenue was down, revenue from Momo actually grew 6% during the latest quarter and now accounts for 83% of Hello Group’s total.
They have 2.453
M in cash (cash + ST Deposits + LT Deposits). If they use it to pay their liabilities (1180M) they will keep 1273M. At the current market cap of 1.14B, I don't mind get every other asset - their apps, equipment, property - for free.
The total share outstanding is reduced to about 197 million now. Shs Float is roughly 76.17M. Net cash is about 8.81. a share. And you have like 10.5% dividend incoming next week.
TO SUM UP:
Shareholder's equity 1 billion 661 million 111 thousands
That is when all debt is paid, while the market cap is 1.14B
So for me, This is a no-brainer investment
Negative about the company: Hello Group’s revenue fell 3.2% in the fourth quarter, with an even larger decline forecast in the current quarter, dragged down by plunging business for its Tantan unit.
Tantan’s revenue plunged by more than 40% to $69 million in the fourth quarter. The company added on its earnings call that Tantan had 2.5 million paying users at the end of the year, down 14% from just three months earlier when it had 2.9 million users.
Hello Group's revenue guidance for Q1 2022 points to be down approximately 8% y/y.
Furthermore, Momo's MAUs - Monthly Active Users as of Q4 2021, were flat compared with the same period a year ago, at 114 million users.
The problem though here is that the market is always looking ahead. And the market simply doesn't believe that Hello Group will be able to reignite its revenue growth rates.
Remember, cheap can always get cheaper. And much cheaper than you can possibly imagine. So, use a stop loss.
If you’re reading my post this far, it already means that you’re taking trading seriously. Subscribe and press like so that this reaches more traders!
Best wishes,
Yurii Domaranskyi
Today I want to talk about MOMO, its fundamentals, and the overall technical picture!
Hello Group (listed on NASDAQ:MOMO) holds two dating apps Momo and Tantan. The company is often called the ‘Tinder of China’. Momo connects people and facilitates social interactions based on location. While Tantan is designed to help its users find and establish romantic connections.
Here are some important ratios:
Market Cap 1.14B
P/B 0.72
Debt/Eq 0.43
Short Float 11.55% according to finviz
Short Float 6.26% according to fintel
As of today.
Positive about the company: While the company’s overall revenue was down, revenue from Momo actually grew 6% during the latest quarter and now accounts for 83% of Hello Group’s total.
They have 2.453
M in cash (cash + ST Deposits + LT Deposits). If they use it to pay their liabilities (1180M) they will keep 1273M. At the current market cap of 1.14B, I don't mind get every other asset - their apps, equipment, property - for free.The total share outstanding is reduced to about 197 million now. Shs Float is roughly 76.17M. Net cash is about 8.81. a share. And you have like 10.5% dividend incoming next week.
TO SUM UP:
Shareholder's equity 1 billion 661 million 111 thousands
That is when all debt is paid, while the market cap is 1.14B
So for me, This is a no-brainer investment
Negative about the company: Hello Group’s revenue fell 3.2% in the fourth quarter, with an even larger decline forecast in the current quarter, dragged down by plunging business for its Tantan unit.
Tantan’s revenue plunged by more than 40% to $69 million in the fourth quarter. The company added on its earnings call that Tantan had 2.5 million paying users at the end of the year, down 14% from just three months earlier when it had 2.9 million users.
Hello Group's revenue guidance for Q1 2022 points to be down approximately 8% y/y.
Furthermore, Momo's MAUs - Monthly Active Users as of Q4 2021, were flat compared with the same period a year ago, at 114 million users.
The problem though here is that the market is always looking ahead. And the market simply doesn't believe that Hello Group will be able to reignite its revenue growth rates.
Remember, cheap can always get cheaper. And much cheaper than you can possibly imagine. So, use a stop loss.
If you’re reading my post this far, it already means that you’re taking trading seriously. Subscribe and press like so that this reaches more traders!
Best wishes,
Yurii Domaranskyi
| disciplined | patient | humble | consistently profitable |
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