Technical analysis of MOMO

Accuracy score :
97%

Momo Inc. ADR

Momo, Inc. operates as a mobile-based social networking platform. The platform includes Momo mobile application and related features, functionalities, tools and services that are provided to users, customers and platform partners. Its offerings includes live video, value-added and mobile game services. The company was founded by Yan Tang, Yong Li, Xiao Liang Lei and Zhiwei Li in July 2011 and is headquartered in Beijing, China.

 

Summary (from the latest annual and quarterly report)

  • Total equity: 1.66 billion USD
  • Market Cap is 5.3 billion USD ( the last price of the stock is 32.53 USD)
  • Momo, Inc. operates as a mobile-based social networking platform. The platform includes Momo mobile application and related features, functionalities, tools and services
  • Total stockholders' equity has increased from 1.03 billion USD in 2017 to 1.66 billion in 2019
  • The company has 1.55 billion USD in cash on account (from the latest quarterly report  2019)
  • Total equity – cash on account = 1.66 billion USD – 1.55 billion USD = 110 million USD
  • In 2019 the company has 722 million USD long-term debt, short – term debt is 15 million USD                                                          (In 2018 the company had 700 million USD long-term debt, short-term debt was zero)
  • The company's revenue has increased in 2018 to 2.03 billion USD from 1.32 billion in 2017
  • Net income in 2018 was 425 million USD, Net income in 2017 was 319 million USD

 

Technical analysis

This stock has weakened more than 20% since April 2019, the price has reached 25 USD and after that started to raise. During the year ended December 31, 2018, MOMO generated net revenue of 2.03 billion USD, representing 53% growth over 2017, net income was 425 million USD. On this chart (the period from September 2018), I marked resistance and support levels. Support levels are 30 and 26 USD, 38 and 40 USD represent the current resistance levels. If the price jumps above 40 USD it would be a "BUY" signal and we have the open way to 45 USD. Rising above 50 USD supports the continuation of the bullish trend overview efficiently for the upcoming period. On the other side, if the price breaks 30 USD it would be a strong "SELL" signal and we have the open way to 26 USD.

 

The management believes that MOMO will drive long-term revenue growth and improved profitability in the upcoming years.

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