Why Hello Group Stock Dropped Today
Shares of Hello Group (NASDAQ: MOMO) fell 9.4% on Thursday as disappointing forward guidance overshadowed better-than-feared second-quarter 2023 results from the Chinese mobile social and entertainment platform.
To be sure, Hello Group's quarterly net revenue climbed a modest 0.9% year over year to $432.7 million, exceeding estimates for a 3.4% decline. That translated to adjusted (non-GAAP) net income of $87.2 million, or $0.43 per American depositary share (ADS), again beating expectations for adjusted earnings of $0.35 per ADS.
To be fair, management pointed out that this was the company's first year-over-year increase in revenue since the pandemic began three years ago, thanks largely to stabilization from the "cash cow business" of its core Momo app. Growth was primarily driven by an increase in revenue from new stand-alone apps and live video services within Momo.
Source Fool.com
