Momo Stock Hits $50 Valuation

Late May / early June has seen Momo stock hit an all time high, with the value climbing to over $50.

The price has more than doubled from an early December valuation of $22.

The $50 valuation is only a small increase year-on-year, however. Momo stock was valued around $42 in June 2017.

The intermittent collapse in price came after the video streaming model looked to be at risk from government censorship.

As regulatory fears eased in early 2018, however, the stock was able to recover a considerable portion of its value.

Much of the recent growth is also reportedly attributable to the acquisition of Tantan, the ‘Chinese Tinder’.

In a press release, Momo stated: “Momo agreed to acquire 100% fully diluted equity stake in Tantan for a combination of share consideration and cash, including approximately 5.3 million newly issued Class A ordinary shares of the Company and US$600.9 million in cash.”

Tantan recently settled with Match Group following a “sweeping intellectual property lawsuit” under the jurisdiction of the Texas Western District Court.

InvestorPlace reports on the optimism around Momo at present: “Revenue growth is running around 50-60%, with the biggest growth segment, Live Video Services, experiencing robust subscription growth and 70%-plus revenue growth.

“Monthly active user growth on Momo is also running in the 20%-plus range. Profit margins are slipping due to growth-related investments, but the 50-60% revenue growth is still powering 50%-plus profit growth.”

Read more here.