Momo Stock Rises 123% After Massive Live Streaming Revenue Boost

Momo has seen its stocks rise by 123% thanks to its incredibly impressive second quarter results.

The stock jump comes after the Chinese company revealed revenues of $99m for Q2 of 2016, a 222% increase from the year before.

This was driven by a tripling of its live streaming revenue compared to the previous quarter.

The streaming service, which launched in the third quarter of 2015, lets users broadcast live videos of themselves, as well as watching videos of others, commenting and sending virtual gifts to other streamers.

These videos could be anything from makeup tutorials and fashion advice to watching people eat lunch, test drive a car, or play music.

Users of Momo can buy and send virtual gifts to these live streamers, and the company takes a 50% cut of the profits.

The most popular broadcasters on such services can apparently make tens of thousands of dollars a month by accepting these gifts.

Jun Zhang, an analyst at Rosenblatt Securities told Bloomberg: “For some Chinese Internet users, online video may simply be a desire for 15 minutes of fame, but for Momo it means a big potential for growth.

“The stock rally is a reaction to the revenue growth, and there is an expectation of solid growth next quarter as well.”

And analysts expect more gains for Momo, predicting another 23% rise in their average 12-month target prices.

This is thanks to the booming live streaming industry in China, which is expected to increase to $5bn by next year, according to Credit Suisse analyst Zoe Zhao.

Read more about Momo’s live streaming success here.