Why Hello Group Stock Is Tumbling Today
Shares of Hello Group (NASDAQ: y) slid in early trading Thursday morning after the Chinese social media and entertainment platform reported its fourth-quarter and full-year results, but recovered somewhat throughout the session. As of 1:30 p.m. ET, they were down by 6.5%.
Revenue fell 3.2% to 3.67 billion yuan -- about $576.6 million at current exchange rates -- compared to a year ago, while net losses wildly expanded to 4.2 billion yuan ($665.8 million) from 651.5 million yuan last year. It subsequently wrote down $690 million in goodwill and intangibles as a result of its market cap being "significantly below its net book value of equity."
Image source: Getty Images.
Source Fool.com
