Why Momo, Inc. Stock Dropped Today

Shares of Momo Inc. (NASDAQ: MOMO) were down 16.9% on Tuesday despite better-than-expected quarterly results from the Chinese social networking platform.

More specifically, Momo's third-quarter revenue climbed 126% year over year to $354.5 million, primarily driven by a 179% increase in live video service revenue to $302.6 million. That translated to adjusted net income (attributable to Momo) of $93.8 million, or $0.45 per diluted American depositary share (ADS), up from $49.5 million, or $0.24 per share in the same year-ago period.

Both the top and bottom lines were well ahead of investors' expectations for adjusted earnings of $0.38 per ADS on revenue of $339.3 million.

Source: Fool.com