SEEKING ALPHA - Mar 21 - Momo is one of the most popular social networking apps in China. It has evolved from a dating app to a major player in live-streaming, a very lucrative business in China. Revenues have jumped ~300% in 2016, and they still have a lot of room to increase further. Shares are cheap based on forward multiples, and the barriers to enter the industry are increasing. Momo started in 2011 by Yan Tang, former executive at NetEase. By 2012, it had 22M registered users, and as of December 2016, monthly active users (MAU) on the platform reached a record 81.1M. The company started generating revenues in July 2013, and is currently profitable. In the beginning, Momo was a dating app similar to Tinder. Over time, the company added more features, like groups, member forums or topics. In 2015, it launched live video streaming, which today generates the bulk of the company's revenues.
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