Momo stock: buy or sell?

MOMO stock price: $19.14 -9.33% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

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Momo shares plummed -9.33% to $19.14 on Friday. On May/18 MOMO rocketed a dazzling 7.41%. With Friday it's been 3 red days in a row.

Momo Inc. operates as a mobile-based social networking platform in the People's Republic of China. The company's platform includes its Momo mobile application and various related features, functionalities, tools, and services that are provided to users, customers, and platform partners.

Should I buy Momo stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Momo stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean MOMO will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Momo stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't detect any rating for MOMO stock for the last 30 days.

Momo stock analysis

Daily outlook

Momo shares plummed -9.33% to $19.14 on Friday.

Shares of Momo ended on Friday at $19.14 and plummed a scary -9.33%. Since January when MOMO stock price broke down the SMA200d line, it slid $-15.42 per share (-44.62%).

MOMO stock chart (daily)

Weekly outlook

Shares of Momo ended this week at $19.14 and collapsed a chilling -7.67%. By mid April MOMO rocketed an astounding 8.32% in just one week.

Since price and 40-weeks moving average lines crossed down late January, MOMO fell $-16.83 per share (-46.79%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.

MOMO stock chart (weekly)

Momo stock price history

Momo stock went public on December 11th, 2014 with a price of $13.541. Since then, MOMO stock grew a 41.40%, with a yearly average of 8.30%. If you had invested $1,000 in Momo stock in 2014, it would worth $414.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Momo stock historical price chart

MOMO stock reached 52-week highs on January at $39.42, and all-time highs 2018-06-11 with a price of 51.52.

Momo stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' MOMO stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price prediction for Momo stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Momo presented its financial report, posting a good gain for the Earnings per Share (EPS) ratio. Analyst expected $0.42 per share, but Momo posted $0.46.
MOMO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.2n/a
2017-Q2-n/a0.15n/a
2017-Q32017-11-280.380.4518.4%
2017-Q42018-03-070.420.4711.9%
2018-Q12018-05-290.450.6340.0%
2018-Q22018-08-220.590.56-5.1%
2018-Q32018-12-050.440.41-6.8%
2018-Q42019-03-120.420.469.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an amazing increase of 50.89% to $13,408.40 million dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) slightly fell a -3.17% to 21.00%.

MOMO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$3.13 M-$-7.98 M-255.0%-
2014$45 M1,329.87%$-25.42 M-56.8%218.48%
2015$870 M1,843.53%$89 M10.2%-449.87%
2016$3,841 M341.54%$1,009 M26.3%1,034.29%
2017$8,886 M131.38%$2,148 M24.2%112.98%
2018$13,408 M50.89%$2,816 M21.0%31.08%

Quarterly financial results

Momo reported $3,330.92 M in revenues for 2018-Q4, a -9.63% decline compared to previous quarter. Reported quarter earnings marked $526.94 M with a profit margin of 15.82%. Profit margin stayed constant a -0.07% compared to previous quarter when profit margin was 15.89%. When comparing turnover to same quarter last year, Momo sales marked a super good growth and skyrocketed a 762.14%.
MOMO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$266 M-$81 M30.6%-
2017-Q2$314 M18.05%$61 M19.5%-24.95%
2017-Q3$354 M13.05%$79 M22.3%29.61%
2017-Q4$386 M9.00%$98 M25.2%23.29%
2018-Q1$2,736 M608.06%$817 M29.8%737.45%
2018-Q2$3,276 M19.76%$781 M23.8%-4.40%
2018-Q3$3,686 M12.51%$586 M15.9%-24.98%
2018-Q4$3,331 M-9.63%$527 M15.8%-10.02%

Momo ownership

Reviewing Momo ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Momo, 4.28% of all outstanding shares are owned by its staff.

In case of Momo stock, 72.07% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MOMO stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Momo:

MOMO
Market cap$4.0 B
Total shares208.7 M
Float shares145.4 M
  - Institutional holdings (%)72.1%
  - Insider holdings (%)4.3%
Shares in short selling0.0%

Momo summary

Friday, May 22nd, 2020
Open$20.57
Close$19.14
Day range$19.08 - $20.60
Previous close$21.11
Session gain-9.33%
Average true range$1.17
50d mov avg$21.76
100d mov avg$26.30
200d mov avg$30.03
Daily pattern
Weekly pattern lt03a

Momo performance

To measure stock performance is always good to compare with competitors or related stocks. We selected as the bechmarking frame for Momo stock.
Stock3m6m12m
MOMOMomo-33.47%-46.55%-23.75%

Momo competitors

Unfortunately, we could not find any public company that could be defined as Momo competitor. This doesn't mean Momo does not have any competitor in the market, it's just we could not detected it.

    Latest Momo stock news