Hello Group Inc, the Beijing based dating group, fell to close at $8.52 Thursday after losing $0.75 (8.09%) on volume of 2,762,056 shares. The stock ranged from a high of $9.17 to a low of $8.46 while Momo’s market cap now stands at $1,678,029,072.
Hello Group’s most recent financial results has been spurned by investors. Since the launch of the results, Hello Group’s stock price has dropped 32%, a five year low.
The operator of popular dating apps Momo and Tantan has struggled to find its footing despite a rebranding strategy, as it faces stiff competition and regulation worries.
Hello Group has rebranded itself from Momo, the name of its popular app meaning “stranger, stranger,” in August. However, the move failed to excite investors, and its shares have moved steadily lower as the company struggles to overhaul its image.
There’s no question about Momo’s dominant position in China. It’s by far the country’s most popular mobile dating app, according to data from Statista. The company further consolidated its position as lead matchmaker in 2018 when it bought another popular dating app Tantan.
Hello’s impressive growth story has lost traction lately. Its latest financial report released post-results showed third-quarter revenues came in at 3.76 billion yuan ($590 million), down 0.2% from the previous year. Its profit fell 11.7% to 403 million yuan over the same period.