Earnings Reports to Watch: Momo Inc (MOMO)
Chinese Internet stocks have been on a tear this year, and Momo is no exception. MOMO stock is up a sizzling 120% year-to-date and twice as much the past 12 months. The location-based social media platform is also slated to report earnings again on May 23, which could keep shares chugging higher.
The company, which was started six years ago, lets users connect via video and chat. Video made up nearly 80% of revenue during the first quarter of the year, and posted rapid growth as the company gets better at monetizing users.
For the most recent three months, MOMO is slated to report 32 cents per share, more than five times earnings for the same quarter a year ago. That growth should factor into the 62% earnings growth on tap for the full year, and the almost 70% growth expected for the next five years. The latter number especially makes MOMO’s multiple of 20 seem more than worth it.
As long as Momo gives Wall Street the growth expected, I expect more gains from this stock.