Hello Group: Short-Term Pain, Long-Term Gain

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Hello Group: Short-Term Pain, Long-Term Gain

SEEKING ALPHA - Hello Group, a Chinese online social and entertainment company, is experiencing short-term pain due to the declining revenues of its key mobile apps, Momo and Tantan. The decline is attributed to both COVID and regulatory factors. However, Hello Group has introduced new mobile apps, such as Duidui, Hertz, and Soulchill, which it aims to grow in markets outside China, and which have lots of room for future growth. The revenue generated by the new apps grew by 154% YoY to RMB203m in Q3 2022. Therefore, the company is well-positioned to deliver long-term gains for patient shareholders, and its shares are rated as a Hold.