Why Momo Inc. Shares Lost 21% in November
Shares of Chinese mobile-based social network Momo Inc. (NASDAQ: MOMO) lost 21.2% last month, according to data from S&P Global Market Intelligence .
After rising a little over 5% during the balance of last month, Momo shares slid nearly 19% on Nov. 28, following the release of the company's third-quarter 2017 earnings. Momo reported net revenue of $354.5 million, a spectacular increase of 126% over the prior-year quarter, in keeping with recent off-the-charts quarterly top-line growth. Net income roughly doubled versus the comparable quarter, to $79.1 million.
Yet sequentially, revenue expansion is slowing, and this has unsettled Momo investors. Using the fourth quarter of 2016, in which Momo booked revenue of $246.1 million, as an anchor point, the company's top line has advanced at a compounded quarterly growth rate of 13% this year. Management's projection of fourth-quarter 2017 revenue of $370 million to $385 million indicates single-digit sequential growth between the third and fourth quarters.
Source: Fool.com
