MOMO stock is falling hard on Monday after revealing some news about its Tantan mobile app.
The bad news for Momo (NASDAQ:MOMO) has to do with its Tantan mobile app being removed from several app store sin China. Tantan is a mobile dating that was acquired by Momo back in early 2018.
According to Momo, the removal of the Tanta mobile app from multiple app stores has to do with the Chinese government. It was government authorities that called for the app to be removed due to it not meeting regulations.
While the news is a blow to MOMO stock, the company says it is already working to resolve the issue. This includes reaching out to the Chinese government to have the app restored. It will also be conducting an internal review of the app to make sure it follows laws and regulations.
Momo notes that while the app is down from stores, it will have an adverse effect of the ability to gain new users. However, anyone that already has the app will still be able to use it without any issues.
Jefferies is weighing in one the trouble that MOMO stock is facing. It claims that it will take between two weeks to a month for the Tantan app to return to app stores. It also doesn’t expect the suspension to have a material impact on the company’s revenue, reports Seeking Alpha.
MOMO stock was down 7% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.