The 3 Biggest Risks to Momo’s Stock
Momo's (NASDAQ: MOMO) stock rallied over 40% last year as the Chinese tech company overcame censorship issues, grew its core live streaming business, and expanded its dating app Tantan. That rally fizzled out this year, however, as coronavirus fears slammed Chinese stocks and new rivals entered the online dating market.
Yet Momo's stock still looks cheap relative to its growth. Wall Street expects Momo's revenue and earnings to rise 32% and 27%, respectively, this year -- but its stock trades at less than 10 times forward earnings. I recently noted that Momo's valuation was "too cheap to ignore," but investors should still recognize the three biggest threats to its growth if they plan to buy the stock.
Image source: Momo.
Source Fool.com
