GRIZZLE - Sep 3 - Momo released Q2 results last week which were better than expected. The stock price have also received a boost from Zao, the face swapping app which went viral over the weekend. For Q2 revenue grew 32% to $604M, $25M ahead of consensus. But revenue from live streaming video is seeing a dramatic slowdown in growth. This segment grew revenue 18%, vs 32% for the entire company. Value added revenue, which includes virtual gifting, was the main growth driver and increased 169%. Momo faced several challenges, including the temporary suspension in May of the homepage and its Tantan dating app. However, the stock still has a strong following. Going forward, this share is likely to be driven by sentiment more than anything else. As such it may best be treated as a trading stock.
by Richard Bowman
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