Momo Shares Rose 13% in March

Scott Harvey 17th April 2018 0 Comments

Momo inc. (NASDAQ: MOMO) saw its shares gain over 13% in March 2018.

The value of Momo stock jumped 9% with the release of the Q4 and FY earnings, which showed continued growth from video streaming.

Video services made up 85% of Momo’s total revenue during the quarter. Its user base of paying live video consumers rose following a plateau to 4.3 million.

Momo’s user acquisition spend has increased from around 45% to over 50% of revenue, or around $200 million per quarter.

The stock also benefited from the $600 million acquisition of competitor Tantan. The deal will close in Q2, helping Momo to regain more of a foothold in the dating niche.

The acquisition is an important step in a competitive landscape, with rivals Weibo and YY circling.

Tantan is currently being sued by Tinder for patent infringement, however, a case that may yet affect the value of Momo stock.

For Q1 2018, Momo expects a revenue of approximately $395 million. If achieved, this would represent a year-on-year increase of around 50%.