에 대한 최신 뉴스 Hello Gr (NASDAQ:MOMO) 주식

Hello Gr

Hello Group Inc provides mobile-based social networking services. It enables users to establish and expand social relationships based on location and interests. Its platform includes the Momo mobile application and a variety of related features, functionalities, tools, and services that it provides to users, customers, and platform partners. The company derives its revenue from live video services, value-added services, mobile marketing services, mobile games, and other services. It operates in three segments: Momo's service lines, Tantan's service lines, and QOOL's service lines out of which Momo's service lines segment derives the majority of revenue.

Momo

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APTO

MOMO

SPWH

화요일 오전 (현지 시간 기준) 미국 주식 선물이 하락세를 보이면서 오늘 투자자들의 관심을 끌 수 있는 주식은 다음과 같다: 1. 월스트리트는 헬로 그룹(NASDAQ:MOMO)이 개장 전에 3억 7,252만 달러의 매출과 주당 28센트의 분기 이익을 보고할 것으로 예상하고 있다. Benzinga Pro의 데이터에 따르면, 헬로 그룹의 주가는 시간외 거래에서 0.6% 하락한 6.60달러를 기록했다.

화요일 주목해야 할 주식: 헬로 그룹, Z스케일러, 앱토즈 그리고 2종목

Hello Group Inc. - American Depositary Shares

Hello Group Inc

In the ever-evolving landscape of global markets, our Perfect Stock Portfolio continues to validate Benjamin Graham&#8217;s timeless principles. Despite the constant refrain that &#8220;value is dead&#8221; and &#8220;book value doesn&#8217;t work,&#8221; our approach of identifying financially sound businesses trading at steep discounts to book value while paying dividends has consistently outperformed the broader market in robust backtesting over the past 25 years.
U.S. Market Overview: Strong Performance Amid Bond Concerns The U.S. markets have maintained their upward trajectory, with the S&amp;P 500 (Ticker: SPY) climbing 3.83%, the (Ticker: QQQ) advancing 4.49%, and the Russell 2000 (IWM) gaining 2.98%. However, a notable concern exists: bonds remain in a downtrend while stocks push higher – an unusual divergence that typically resolves either through bond prices rallying or stocks eventually following bonds lower. Historical patterns suggest caution, as several major stock market corrections were preceded by exactly this type of divergence.
The U.S. economy remains fundamentally strong. Unemployment sits at 4%, consumer spending continues despite inflation grumbles, and small businesses are raising prices even as their post-election optimism fades. January&#8217;s CPI report came in hotter than expected, catching the perpetually inaccurate Wall Street and government economists off guard yet again. The Federal Reserve, under Jerome Powell&#8217;s leadership, appears committed to maintaining higher rates to combat persistent inflation, despite political pressure for rate cuts.
Europe: The Sleeping Giant Awakens While everyone&#8217;s been fixated on U.S. markets, something remarkable is happening across the Atlantic. The Euro Stoxx 50 surged 8.5% in January – its strongest monthly performance in years. The Stoxx Europe 600 gained 6.4%, and even the UK&#8217;s FTSE rose 6.1%. Perhaps most surprisingly, Germany&#8217;s DAX reached an all-time high on January 25th, despite the country&#8217;s well-documented challenges with energy policy and immigration.
European corporate earnings have been robust, and valuations remain notably attractive compared to U.S. markets. This valuation disconnect is finally attracting serious capital flows. The ECB&#8217;s recent 25 basis point rate cut to 2.75% marks their fifth reduction in seven months, signaling a commitment to supporting economic growth while managing inflation, which currently runs at 2.3%.
Asia: China&#8217;s Forceful Intervention and Japan&#8217;s Corporate Revolution China&#8217;s government has taken unprecedented steps to support its equity markets, mandating increased stock purchases by state-owned insurers and banks. The initiative is expected to inject approximately $138 billion annually into their $12 trillion market over the coming years. Despite ongoing concerns about deflation and property market troubles, Chinese tech stocks have surged, with the Hang Seng tech index up 25% from January lows, outpacing U.S. tech performance year-to-date.
Japan is experiencing a genuine corporate governance revolution. The Tokyo Stock Exchange&#8217;s new guidelines demanding improved ROE and higher valuations have sparked meaningful change. Companies are finally embracing shareholder-friendly practices, including dividend increases and share buybacks. Western activist investors like Oasis Management and Elliott Management are finding success where previous attempts failed, thanks to unprecedented government support for corporate reform.
Perfect Stock Portfolio Performance Our portfolio delivered an impressive 4.5% return last month, outperforming the S&amp;P 500. Standout performers included AP Moller-Maersk, Commerzbank, and several Asian holdings. The portfolio maintains its value characteristics, trading at just 77% of tangible book value while offering a dividend yield around 4% – four times that of the S&amp;P 500.
These results continue to validate our investment approach: identifying good businesses with strong balance sheets, ample liquidity, and substantial undervaluation that pay dividends to shareholders. While we won&#8217;t outperform every month, this low-maintenance, easily implemented strategy has proven its ability to generate market-beating returns over time.
The message remains clear: despite the naysayers, value investing isn&#8217;t dead – it&#8217;s alive and thriving for those willing to look beyond the headlines and stick to time-tested principles. As global markets evolve and new opportunities emerge in Europe and Asia, our disciplined approach to identifying deeply undervalued, financially sound businesses continues to serve investors well.

Opinion

AMKBY

JOUT

ROHCY

The Perfect Stocks Portfolio: Global Value Investing in a Changing World

In an era of global interconnectivity, The Perfect Stocks Portfolio has embraced a truly international approach to value investing, incorporating companies from diverse markets including the United States, China, Switzerland, Denmark, Greece, Singapore, Hong Kong, and Japan. This strategic global diversification follows the time-tested principles of Benjamin Graham, the founder of modern security analysis and father of value investing.
Investment Philosophy and Strategy
The portfolio&#8217;s foundation rests on Graham&#8217;s fundamental criteria for selecting stocks: profitable companies that pay dividends and maintain strong balance sheets. This global approach is particularly relevant today, as the United States currently represents 60-70% of global market cap—a level not seen since the 1970s, before a significant market correction.
While maintaining a focus on liquidity and ensuring all stocks can be traded in the United States, the portfolio seeks high-quality, dividend-paying, undervalued companies worldwide. This approach takes advantage of valuation distortions across different markets while recognizing the interconnected nature of global business.
Current Market Environment
The U.S. market maintains a strong uptrend, continuing its 20-month momentum with only brief interruptions. Despite rapid interest rate increases, the American consumer has demonstrated remarkable resilience, maintaining spending levels that keep pace with inflation. This strength is exemplified by recent impressive earnings from companies like Costco, which reported better-than-expected revenue and earnings growth.
The job market remains healthy, though showing signs of moderation. Wage pressure has been kept in check by productivity increases and legal immigration. However, inflation remains sticky around 3%, with recent Producer Price Index (PPI) data surprising to the upside.
Regional Market Updates
China has implemented a $1.4 trillion stimulus program—its most aggressive monetary policy since 2008-2009. While market expectations vary between 4-5% growth, the administration&#8217;s commitment to economic reinvigoration suggests potential for additional stimulus measures.
Japan's economy shows moderate recovery with consumer spending and capital investment growth. The Bank of Japan&#8217;s upcoming policy decisions are closely watched, with mixed expectations regarding potential rate hikes. The country recently approved a $250 billion stimulus package to support household spending and economic activity.
Europe markets face ongoing challenges, though the European Central Bank has implemented a 25-basis-point rate cut. While inflation control has improved, growth remains a concern. The United Kingdom continues to navigate political and economic challenges.
Portfolio Performance Highlights
Recent portfolio performance has been mixed, with notable movements including:
<ul>
<li>Hello Group (Ticker: MOMO) (Chinese internet company): Leading performer with 16% growth </li>
<li>Johnson Outdoors (Ticker: JOUT) Positive returns despite weak earnings </li>
<li>Union Industrial Holdings: Strong monthly performance </li>
<li>Shipping companies and semiconductor stocks: Temporary underperformance</li>
</ul>
Portfolio News
ROHM Semiconductor (Ticker: ROHCY) and Nanjing SemiDrive Technology Ltd. have jointly developed a smart cockpit reference design, integrating SemiDrive&#8217;s X9M and X9E automotive System-on-Chips (S with ROHM&#8217;s Power Management ICs (PMICs), Serializer/Deserializer (SerDes) ICs, and LED driver ICs. This collaboration aims to enhance the functionality and efficiency of vehicle cockpits, supporting up to three display projections and four Advanced Driver Assistance System (ADAS) cameras. Several automakers have adopted the reference design to advance smart cockpit applications.
The collaboration between ROHM Semiconductor and SemiDrive represents an important advancement in smart cockpit technology. To understand its significance, let&#8217;s first break down what a smart cockpit is and why this reference design matters.
A smart cockpit in modern vehicles is essentially the command center where all driver information, entertainment, and control systems come together. Think of it as the digital dashboard and control interface that helps drivers interact with their vehicle&#8217;s various systems.
The key innovation here lies in the integration of several sophisticated components:
The foundation is built on SemiDrive&#8217;s X9M and X9E automotive System-on-Chips. These are like the brains of the operation &#8211; imagine them as powerful computers condensed onto single chips, specifically designed for automotive use. They handle the complex processing needed for multiple displays and cameras.
A.P. Moller-Maersk (Ticker: AMKBY), a leading Danish shipping and logistics company, anticipates a 5% to 7% growth in global container volumes for 2025, driven by robust U.S. demand amid potential port strikes and tariffs on foreign goods.
&nbsp;This outlook contrasts with recent trends; in 2023, Maersk reported a 6% decline in loaded volumes during the second quarter compared to the same period in 2022, reflecting a broader industry downturn.
&nbsp;The company has also implemented significant cost-cutting measures, including plans to reduce its workforce by approximately 10,000 positions in response to challenging market conditions.
Johnson Outdoors Inc. (Ticker: JOUT), a global innovator in outdoor recreation equipment and technology, reported a challenging fiscal year ending September 27, 2024. The company faced an 11% decline in revenue, totaling $592.8 million, attributed to market challenges and competitive pressures across all segments. This downturn led to an operating loss of $43.5 million, a significant drop from the previous year&#8217;s operating profit of $11.7 million.
The fiscal fourth quarter saw net sales of $105.9 million, up $9.5 million from the same period last year. However, the quarter ended with an operating loss of $42.8 million, exacerbated by increased promotional pricing, a shift toward lower-margin products, and inventory reserves on slow-moving and obsolete stock.
Despite these challenges, Johnson Outdoors maintained a strong financial position, reporting $162.0 million in cash and investments as of September 27, 2024, with no debt. The company remains focused on consumer-driven innovation, enhancing go-to-market strategies, and improving operational efficiencies to achieve long-term profitable growth.
Africa Oil Corp. (Ticker: AOIHF) recently concluded a share buyback program and initiated a new one. Between December 2 and December 6, 2024, the company repurchased 815,000 shares, with 320,000 shares acquired on the TSX and 495,000 on Nasdaq Stockholm. The transactions were executed by Scotia Capital Inc. and Pareto Securities, respectively. All repurchased shares will be cancelled.
Under the share buyback program launched on December 4, 2023, which expired on December 5, 2024, Africa Oil repurchased a total of 23,987,632 common shares, falling short of the authorized maximum of 38,654,702 shares.
On December 6, 2024, the company initiated a new share buyback program, repurchasing 174,000 shares on its first day. This program allows for a maximum of 18,362,364 shares to be repurchased over 12 months, concluding on December 5, 2025. Both programs comply with the EU Market Abuse Regulation, Safe Harbour Regulation, and the relevant Canadian and Swedish securities laws.
Industry Diversification
The portfolio maintains broad sector exposure including:
<ul>
<li>Semiconductors and integrated circuits </li>
<li>Shipping and transportation </li>
<li>Outdoor recreation (camping, fishing, boating) </li>
<li>Social networks and e-commerce </li>
<li>Manufacturing (automotive, electronics, medical equipment) </li>
<li>Oil and gas exploration and production </li>
<li>Consumer Goods </li>
<li>Electronic components</li>
</ul>
Investment Outlook
While the portfolio may appear conservative, its strategy of focusing on undervalued, dividend-paying companies with strong balance sheets has historically outperformed the broader market. This approach, grounded in Graham&#8217;s time-tested principles, continues to offer a steady, conservative path to long-term market outperformance through global diversification and value investing principles.

The Perfect Stocks Portfolio: A Global Approach to Value Investing in 2025

Citigroup analyst Hillman Chan maintains Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) with a Neutral and raises the price target from $5.9 to $7.

Price Target

Analyst Ratings

Citigroup Maintains Neutral on Hello Gr, Raises Price Target to $7

WIIM

Hello Group shares are trading higher after the company reported better-than-expected Q3 financial results and issued Q4 revenue guidance above estimates.

Hello Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) reported a fiscal third-quarter fiscal 2024 net revenue decline of 12.1% year-on-year to $381.14 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42383658/hello-group-inc-announces-unaudited-financial-results-for-the-third-quarter-of-2024" rel="noreferrer noopener">analyst consensus estimate of $366.41 million</a>.
China&#8217;s mobile-based social and entertainment services&nbsp;provider reported an&nbsp;adjusted net income per ADS of $0.38, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $0.27</a>. The stock price gained after the results.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42368303/whats-going-on-with-us-listed-chinese-stocks-alibaba-jd-nio-li-xpeng-on-friday" rel="noreferrer noopener">US-Listed Chinese Stocks Rise Ahead of Key Economic Policy Meeting; Investors Eye Stimulus Plans</a>
Drivers: Monthly Active Users (MAU) on the Tantan application were 12.0 million in September 2024, down from 15.7 million a year ago.
Momo app&#8217;s total number of paying users declined to 6.9 million in the quarter from 7.8 million a year ago. Tantan had 0.9 million paying users in the quarter, down from 1.4 million a year ago.
Segments: Revenues from the Live video service declined by 16.0% Y/Y to $183.3 million, Total value-added service decreased by 7.5% Y/Y to $193.3 million, and Mobile marketing remained flat Y/Y at $4.4 million.
Net revenues from the Momo segment declined by 10.2% Y/Y to $350.9 million, primarily due to the decrease in net revenues from value-added service and live video service on Momo app. The Tantan segment revenues decreased by 28.1% to $30.2 million.
Adjusted income from operations declined 33.3% to $64.8 million.
Hello Group held $2.11 billion in cash and equivalents and generated $48.6 million in operating cash flow.
Chair and CEO Yan Tang flagged overseas business reaccelerated growth, citing advancing the localization process and expanding its product offering as reasons for continuing to invest firmly in more diversified overseas markets.
Outlook: Hello expects fourth-quarter revenue of 2.56 billion Chinese yuan–2.66 billion Chinese yuan (a decrease of 14.7% – 11.4% year over year) versus the&nbsp;consensus of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">2.61 billion Chinese yuan</a>.
The U.S. listed Chinese stocks also gained Monday in anticipation of additional stimulus measures from the country to drive economic growth.
Price Action:&nbsp;MOMO stock is up 6.35% at $7.20 premarket on the last check Monday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42372173/docusign-stock-jumps-on-strong-q3-analysts-await-proof-of-sustained-growth" target="_blank" rel="noreferrer noopener">DocuSign Stock Jumps On Strong Q3, Analysts Await Proof Of Sustained Growth</a></li>
</ul>

Equities

Guidance

Movers

Chinese Social Media Company Hello Group Gains After Q3 Print, CEO Flags Overseas Growth

<h3>Companies Reporting Before The Bell</h3>
• Rent the Runway (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RENT#NASDAQ">RENT</a>) is likely to report quarterly loss at $4.45 per share on revenue of $76.05 million. 
• VersaBank (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VBNK#NASDAQ">VBNK</a>) is projected to report quarterly earnings at $0.41 per share on revenue of $29.20 million. 
• Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) is estimated to report quarterly earnings at $0.27 per share on revenue of $366.41 million. 
<h3>Companies Reporting After The Bell</h3>
• Casey's General Stores (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CASY#NASDAQ">CASY</a>) is projected to report quarterly earnings at $4.27 per share on revenue of $4.02 billion. 
• Toll Brothers (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) is estimated to report quarterly earnings at $4.34 per share on revenue of $3.17 billion. 
• MongoDB (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>) is likely to report quarterly earnings at $0.69 per share on revenue of $495.72 million. 
• Vail Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) is likely to report quarterly loss at $4.98 per share on revenue of $251.62 million. 
• Genasys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNSS#NASDAQ">GNSS</a>) is projected to report quarterly loss at $0.11 per share on revenue of $9.03 million. 
• Phreesia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHR#NYSE">PHR</a>) is projected to report quarterly loss at $0.29 per share on revenue of $106.00 million. 
• HealthEquity (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HQY#NASDAQ">HQY</a>) is expected to report quarterly earnings at $0.72 per share on revenue of $290.00 million. 
• Amtech Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASYS#NASDAQ">ASYS</a>) is projected to report quarterly earnings at $0.01 per share on revenue of $23.75 million. 
• Oracle (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) is likely to report quarterly earnings at $1.48 per share on revenue of $14.11 billion. 
• Braze (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRZE#NASDAQ">BRZE</a>) is projected to report quarterly loss at $0.01 per share on revenue of $148.19 million. 
• Yext (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YEXT#NYSE">YEXT</a>) is projected to report quarterly earnings at $0.12 per share on revenue of $113.21 million. 
• C3.ai (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>) is expected to report quarterly loss at $0.16 per share on revenue of $91.02 million. 
• Planet Labs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PL#NYSE">PL</a>) is likely to report quarterly loss at $0.04 per share on revenue of $63.12 million. 
• Oil-Dri Corp of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ODC#NYSE">ODC</a>) is projected to report earnings for its first quarter. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ASYS

BRZE

CASY

GNSS

ORCL

RENT

VBNK

YEXT

Earnings Scheduled For December 9, 2024

<ul>
<li>Monthly Active Users ("MAU") on Tantan app were 12.0 million in September 2024, compared to 15.7 million in September 2023.</li>
<li>For the&nbsp;Momo app total paying users was 6.9 million for the third quarter of 2024, compared to 7.8 million for the same period last year. Tantan had 0.9 million paying users for the third quarter of 2024 compared to 1.4 million from the year ago period.</li>
</ul>

In Q3, Hello Group Reported 12.0M Monthly Active Users on Tantan App Vs 15.7M YoY, Total Paying Users of 6.9M Vs 7.8M YoY for Momo App, Total Paying Users of 0.9M for Tantan Vs 1.4M YoY

Business Outlook
For the fourth quarter of 2024, the Company expects total net revenues to be between RMB2.56 billion to RMB2.66 billion, representing a decrease of 14.7% to 11.4% year over year.

Hello Gr Expects Q4 Revenue Of RMB2.56B-RMB2.66B Vs RMB2.61B Est

Hello Gr Q3 Adj EPADS $0.38 Beats $0.27 Estimate, Sales $381.14M Beat $366.41M Estimate

Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) will release its quarterly earnings report on Monday, 2024-12-09. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Hello Gr to report an earnings per share (EPS) of $0.26.
The market awaits Hello Gr's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
<h3>Past Earnings Performance</h3>
The company's EPS beat by $0.05 in the last quarter, leading to a 2.97% drop in the share price on the following day.
Here's a look at Hello Gr's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.28</td>
<td>0.29</td>
<td>0.34</td>
<td>0.35</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.33</td>
<td>0.04</td>
<td>0.37</td>
<td>0.42</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-3.0%</td>
<td>10.0%</td>
<td>0.0%</td>
<td>10.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1733493798_0.png" alt="eps graph" />
<h3>Market Performance of Hello Gr's Stock</h3>
Shares of Hello Gr were trading at $6.62 as of December 04. Over the last 52-week period, shares are down 3.78%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. 
<a href="https://www.benzinga.com/quote/MOMO/earnings">To track all earnings releases for Hello Gr visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

A Preview Of Hello Gr's Earnings

<h3 class="wp-block-heading">China Brings Out The Big Guns&nbsp;</h3>
As ZeroHedge reported on Thursday, &#8220;<a href="https://www.zerohedge.com/markets/chinas-bazooka-moment-arrives-here-are-3-most-important-message-xis-shock-and-awe-politburo">China&#8217;s Bazooka Moment</a>&#8221; has arrived. China&#8217;s expanded stimulus measures include:&nbsp;
<ul>
<li>A September politburo meeting focused on economic measures. According to&nbsp;Goldman strategist Lu Sun, economics is rarely the focus of a September meeting, so this is extraordinary.&nbsp;</li>
<li>China issuing&nbsp;¥2 trillion in government bonds (equivalent to 1.7% of its GDP), with half of those proceeds earmarked for consumption-related subsidies.&nbsp;</li>
<li>China injecting&nbsp;¥1 trillion into state-owned backs to boost their Tier-1 capital.&nbsp;</li>
</ul>
In light of that, here are four bets on China we&#8217;ve placed in the Portfolio Armor trading Substack, starting with a brief update on the one I mentioned here earlier this week.&nbsp;
<h3 class="wp-block-heading">Four Trades That Could Benefit From China&#8217;s Bazooka Moment</h3>
Qifu Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QFIN#NASDAQ">QFIN</a>). This is essentially the Chinese version of Lending Club (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LC#NYSE">LC</a>). Our trade here was buying the $25 strike calls on QFIN expiring on January 17th for $2. Those were trading for $4.70 as of Thursday&#8217;s close, so you might want to go a little further out of the money if you are buying now. 
<figure class="wp-block-image size-full is-resized"><a href="https://portfolioarmor.substack.com/p/trade-alert-chinese-fintech"><img loading="lazy" decoding="async" width="833" height="732" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231452/Trade-Alert-1.jpg" alt="" class="wp-image-1515" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231452/Trade-Alert-1.jpg 833w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231452/Trade-Alert-1-300x264.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231452/Trade-Alert-1-768x675.jpg 768w" sizes="(max-width: 833px) 100vw, 833px" /></a></figure>
X Financial&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYF#NYSE">XYF</a>). Like QFIN, X offers a peer-to-peer lending platform in China, but X also offers other consumer financial products such as insurance. We bought the underlying shares on this one at $3.95 earlier this year. It closed at $5.45 on Thursday, but probably still has more room to run with the stimulus tailwind.&nbsp;
<figure class="wp-block-image size-full is-resized"><a href="https://portfolioarmor.substack.com/p/trade-alert-china-update"><img loading="lazy" decoding="async" width="826" height="775" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231700/Trade-Alert-2.jpg" alt="" class="wp-image-1516" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231700/Trade-Alert-2.jpg 826w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231700/Trade-Alert-2-300x281.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26231700/Trade-Alert-2-768x721.jpg 768w" sizes="(max-width: 826px) 100vw, 826px" /></a></figure>
Hello Group Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>). This is a profitable Chinese social media company, which includes a dating app similar to those of&nbsp;America&#8217;s Match Group, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>).&nbsp;It also has non-dating apps related to karaoke, etc. This might be the deepest value of the names mentioned here so far, as it currently trades at 0.83x tangible book. Our trade here was buying the $7 strike calls expiring on January 17th for $0.70. Those were trading at $0.85 as of Thursday&#8217;s close.&nbsp;
<figure class="wp-block-image size-full is-resized"><a href="https://portfolioarmor.substack.com/p/trade-alert-top-names-aee"><img loading="lazy" decoding="async" width="833" height="736" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232014/Trade-Alert-3.jpg" alt="" class="wp-image-1517" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232014/Trade-Alert-3.jpg 833w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232014/Trade-Alert-3-300x265.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232014/Trade-Alert-3-768x679.jpg 768w" sizes="(max-width: 833px) 100vw, 833px" /></a></figure>
PDD Holdings Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>). This Chinese company combines elements of America&#8217;s&nbsp;Amazon.com, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and&nbsp;Groupon, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRPN#NASDAQ">GRPN</a>). Our trade here was buying a $140-$145 call spread expiring on December 20th for $1.60. As of Thursday&#8217;s close, the midpoint on that spread was $1.10. To be honest, I had mentally written off this trade after the company&#8217;s weak guidance last quarter, but it spiked 13.57% on Thursday. Despite that, it still looks cheap, with a valuation rating of 9 (out of 10) according to&nbsp;<a href="https://www.chartmill.com/stock/quote/PDD/fundamental-analysis?a=221937">Chartmill</a>.&nbsp;

<figure class="wp-block-image size-full is-resized"><a href="https://portfolioarmor.substack.com/p/trade-alert-when-others-are-fearful"><img loading="lazy" decoding="async" width="828" height="730" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232300/PDD.jpg" alt="" class="wp-image-1518" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232300/PDD.jpg 828w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232300/PDD-300x264.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232300/PDD-768x677.jpg 768w" sizes="(max-width: 828px) 100vw, 828px" /></a></figure>
<h3 class="wp-block-heading">What Happens When The Effects Of China&#8217;s Stimulus End? </h3>
Each of those names should benefit at least as long as the tailwind from China&#8217;s stimulus measures lasts.&nbsp;
If you think ZeroHedge&#8217;s prediction below is correct, consider exiting after PDD&#8217;s earnings in two months.&nbsp;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The half-life of this intervention will be 2-3 months, then markets will realize China is not stimulating demand. Then we see new decade lows, then China goes all in with $2TN+ fiscal bazooka <a href="https://t.co/hmCFY1dV7I">https://t.co/hmCFY1dV7I</a>
&mdash; zerohedge (@zerohedge) <a href="https://twitter.com/zerohedge/status/1838560366667714912?ref_src=twsrc%5Etfw">September 24, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
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If you&#8217;d like to stay in touch
You can scan for optimal hedges for individual securities, find our current top ten names, and&nbsp;create hedged portfolios&nbsp;on&nbsp;<a href="https://portfolioarmor.com/">our website</a>.&nbsp;You can also follow Portfolio Armor on X&nbsp;<a href="https://twitter.com/portfolioarmor">here</a>, or become a free subscriber to our trading Substack using the link below (we&#8217;re using that for our occasional emails now).
<figure class="wp-block-image aligncenter size-full is-resized"><a href="https://portfolioarmor.substack.com/"><img loading="lazy" decoding="async" width="602" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232450/Widget-3.jpg" alt="" class="wp-image-1519" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232450/Widget-3.jpg 602w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/26232450/Widget-3-300x208.jpg 300w" sizes="(max-width: 602px) 100vw, 602px" /></a></figure>
And you can hedge your long positions using our&nbsp;<a href="https://apps.apple.com/us/app/portfolio-armor/id394951144">optimal hedging app</a>.&nbsp;

Asia

General

AMZN

GRPN

MTCH

Citigourp Global Markets 2% Protected Notes Linked To The Djia

QFIN

Betting On China As It Brings Out The Big Guns

Benchmark analyst Fawne Jiang maintains Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) with a Buy and lowers the price target from $15 to $13.

Benchmark Maintains Buy on Hello Gr, Lowers Price Target to $13

Hello Group Inc. Sponsored ADR (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/momo#NASDAQ">MOMO</a>) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.04, delivering a surprise of -87.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Momo, which belongs to the Zacks Internet - Software industry, posted revenues of $370.35 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.66%. This compares to year-ago revenues of $432.71 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
Momo shares have lost about 4.5% since the beginning of the year versus the S&amp;P 500&#39;s gain of 18.4%.
<h2>What&#39;s Next for Momo?</h2>
While Momo has underperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Momo: unfavorable. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $368.73 million in revenues for the coming quarter and $0.92 on $1.46 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Samsara Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iot#NYSE">IOT</a>), is yet to report results for the quarter ended July 2024. The results are expected to be released on September 5.
This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Samsara Inc.&#39;s revenues are expected to be $289.35 million, up 32% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2330675/hello-group-inc-sponsored-adr-momo-beats-q2-earnings-and-revenue-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2330675">To read this article on Zacks.com click here.</a>

Earnings Beats

Large Cap

Social Media

Small Cap

Tech

Hello Group Inc. Sponsored ADR Beats Q2 Earnings and Revenue Estimates

Business Outlook
For the third&nbsp;quarter of 2024, the Company expects total net revenues to be between RMB2.58 billion to RMB2.68 billion, representing a decrease of 15.2% to 11.9% year over year. This forecast reflects the Company's current and preliminary views on the market and operational conditions, which are subject to change.

Hello Group Expects Q3 Revenue Of RMB2.58B-RMB2.68B Vs $RMB2.67B Est

Hello Gr Q2 Adj EPADS $0.33 Beats $0.28 Estimate, Sales $370.35M Miss $376.30M Estimate

With U.S. stock futures trading lower this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:
<ul>
<li>Wall Street expects Hello Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) to report quarterly earnings at 28 cents per share on revenue of $372.52 million before the opening bell, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>. Hello Group shares fell 0.6% to $6.60 in after-hours trading.</li>
<li>Analysts expect Zscaler, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>) to post quarterly earnings at 69 cents per share on revenue of $567.93 million. The company will release earnings after the markets close. Zscaler shares gained 0.1% to $200.00 in after-hours trading.</li>
<li>Aptose Biosciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APTO#NASDAQ">APTO</a>) shares rose in Friday's after-hours trading after the company announced a $10 million loan through a Facility Agreement with Hanmi Pharmaceutical Co. Aptose shares jumped 69.3% to $0.6874 in the after-hours trading session.</li>
</ul>
Check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
<ul>
<li>After the markets close, HealthEquity, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HQY#NASDAQ">HQY</a>) is projected to post quarterly earnings at 70 cents per share on revenue of $284.87 million. HealthEquity shares fell 0.6% to $79.10 in the after-hours trading session.</li>
<li>Analysts expect Sportsman&#8217;s Warehouse Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPWH#NASDAQ">SPWH</a>) to report a quarterly loss at 9 cents per share on revenue of $285.03 million after the closing bell. Sportsman&#8217;s Warehouse shares fell 1% to $2.08 in the after-hours trading session.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/08/40666406/top-2-real-estate-stocks-that-could-blast-off-this-quarter">Top 2 Real Estate Stocks That Could Blast Off This Quarter</a></li>
</ul>
Image generated using AI tools

Hello Group, Zscaler And 3 Stocks To Watch Heading Into Tuesday

Arlo Technologies (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/arlo#NYSE">ARLO</a>) shares rallied 19.7% in the last trading session to close at $16.52. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock&#39;s 4.7% gain over the past four weeks.
Arlo is benefiting from its AI-powered subscription service surpassing 4 million paid accounts, reflecting the value consumers place on its subscription plans and service business.
This maker of smart connected devices is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $124.75 million, up 8.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arlo Technologies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock&#39;s price usually doesn&#39;t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARLO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy).
Arlo Technologies is a member of the Zacks Internet - Software industry. One other stock in the same industry, Hello Group Inc. Sponsored ADR (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/momo#NASDAQ">MOMO</a>), finished the last trading session 7.9% higher at $6.61. MOMO has returned 8.5% over the past month.
Momo&#39;s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.40. Compared to the company&#39;s year-ago EPS, this represents a change of -7%. Momo currently boasts a Zacks Rank of #5 (Strong Sell).
<a href="https://www.zacks.com/stock/news/2299298/arlo-technologies-arlo-surges-19-7-is-this-an-indication-of-further-gains?cid=CS-BENZ-FT-tale_of_the_tape|daily_price_change_5%-2299298">To read this article on Zacks.com click here.</a>

ARLO

Arlo Technologies Surges 19.7%: Is This an Indication of Further Gains?

Across the recent three months, 4 analysts have shared their insights on Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>), expressing a variety of opinions spanning from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $10.68, a high estimate of $16.00, and a low estimate of $5.70. A 25.57% drop is evident in the current average compared to the previous average price target of $14.35. 
<img src="https://www.benzinga.com/files/images/story/2024/1717423244_0.png" alt="price target chart" />
<h2>Diving into Analyst Ratings: An In-Depth Exploration</h2>
The perception of Hello Gr by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Daniel Chen</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$6.00</td>
<td>$13.00</td>
</tr>
<tr>
<td>Fawne Jiang</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$15.00</td>
<td>$16.00</td>
</tr>
<tr>
<td>Hillman Chan</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$5.70</td>
<td>$6.40</td>
</tr>
<tr>
<td>Fawne Jiang</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$16.00</td>
<td>$22.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Hello Gr. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Hello Gr compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Hello Gr's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Capture valuable insights into Hello Gr's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/MOMO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Hello Gr analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>About Hello Gr</h2>
Hello Group Inc provides mobile-based social networking services. It enables users to establish and expand social relationships based on location and interests. Its platform includes the Momo mobile application and a variety of related features, functionalities, tools, and services that it provides to users, customers, and platform partners. The company derives its revenue from live video services, value-added services, mobile marketing services, mobile games, and other services. It operates in three segments: Momo's service lines, Tantan's service lines, and QOOL's service lines out of which Momo's service lines segment derives the majority of revenue.
<h3>Financial Milestones: Hello Gr's Journey</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining Hello Gr's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -9.17% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.
Net Margin: Hello Gr's net margin excels beyond industry benchmarks, reaching 0.2%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Hello Gr's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.05%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Hello Gr's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.03% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Hello Gr's debt-to-equity ratio is below the industry average at 0.33, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>The Basics of Analyst Ratings</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Navigating 4 Analyst Ratings For Hello Gr

JP Morgan analyst Daniel Chen downgrades Hello Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MOMO#NASDAQ">MOMO</a>) from Overweight to Neutral and lowers the price target from $13 to $6.

Downgrades

JP Morgan Downgrades Hello Gr to Neutral, Lowers Price Target to $6

<h4>Key Takeaways:</h4>
<ul>
<li>Hello Group&rsquo;s three years of revenue declines continued in the first quarter and are accelerating as the company faces both internal and external headwinds</li>
<li>The dating-app operator said it could soon receive a policy boost, in an apparent reference to China&rsquo;s recent efforts to raise its tumbling birthrates</li>
</ul>
By Doug Young
Has the flame finally gone out in the &ldquo;Tinder of China&rdquo;?
Investors may be starting to feel that way, after&nbsp;Hello Group Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/momo#NASDAQ">MOMO</a>) reported its latest quarterly results that showed nearly all of its key metrics continued to drop in this year&rsquo;s first quarter, led by accelerating revenue declines for one of China&rsquo;s oldest dating apps.
Investors dumped the stock to the tune of a 14% decline on Tuesday after the company&rsquo;s&nbsp;<a href="https://www.prnewswire.com/news-releases/hello-group-inc-announces-unaudited-financial-results-for-the-first-quarter-of-2024-302156503.html">latest results announcement</a>, sending it to a one-and-a-half year low. The shares rebounded somewhat the next day, reflecting the love-hate relationship investors have with this company, which is still a cash cow due to its status as the leader in China&rsquo;s huge dating market.
Notably, Hello Group&rsquo;s stock has been left behind in the recent rally for U.S.-listed Chinese shares that has lifted the iShares MSCI China ETF (MCHI.US) more than 20% from a low in late January, as investors become bullish on the group after more than two years of neglect.
Woes at the company, whose revenue has been in continuous decline since 2019, owe at least partly to factors beyond its control. Three years of tough pandemic restrictions dampened the mood for dating among the many young users of the company&rsquo;s apps, including its industry-leading Momo. Since the pandemic&rsquo;s end, weak consumer sentiment has continued to dampen demand as China&rsquo;s economy slows sharply after a three-decade boom.
Last, but certainly not least, growing numbers of Chinese are simply not interested in dating or marriage these days &ndash; a reality that shows up in the country&rsquo;s plunging birth rates.
With so many macro factors working against it, it&rsquo;s not too surprising that Hello Group is having difficulty finding and keeping an audience. Added to that are company-specific factors, most notably Hello Group&rsquo;s disastrous purchase of its other major app, Tantan, back in 2018. Once billed as a key future growth driver, Tantan quickly became just the opposite and has been sinking fast ever since. Hello Group was also tripped up by regulatory issues in 2019 when its popular livestreaming service came under government scrutiny for containing pornography.
The company has tried to escape the turbulence in its home China market by expanding abroad. Its global expansion, most notably to Turkey and the Middle East, has been one of the few positive notes in its most recent reports. Most of that has come from Hello Group&rsquo;s new apps, with names like Duidui, Hertz and Soulchill.
Revenue from those new apps, which are mostly focused on overseas markets, grew 51% in the first quarter to 344 million yuan ($47.5 million), accounting for 13% of the company&rsquo;s total revenue for the period, it said on its first-quarter earnings call. That increase contrasted sharply with the Hello Group&rsquo;s overall revenue, which contracted 9.2% year-on-year to 2.56 billion yuan from 2.82 billion yuan a year earlier.
The latest revenue decline rate marked an acceleration from the last two quarters, when the figure dipped by around 6%. Making matters worse, the company forecast its revenue would fall about 14% in the second quarter, representing a further acceleration of the decline rate.
<h3>Investor Turnoff</h3>
Despite all the gloom, Hello Group continues to be quite profitable, partly due to its market-leading position and also its strict cost controls. The company&rsquo;s costs and expenses fell 12% year-on-year in the first quarter, outpacing its revenue decline rate. As a result, its operating income rose 5.5% during the quarter to 460 million yuan.
The company&rsquo;s bottom line wasn&rsquo;t so pretty, with its net income plunging to just 5.2 million yuan in the latest quarter from 390 million yuan a year earlier. But most of that was due to a one-time tax expense in the latest quarter, company officials explained on the earnings call. Excluding that, the company&rsquo;s non-GAAP net income, which typically excludes stock-based employee compensation, would have risen 8% to 508.5 million yuan.
That combination of relatively high profits and sinking investor confidence has been quite toxic for Hello Group&rsquo;s valuation, with the stock currently trading at a price-to-earnings (P/E) ratio of just 4.9. That&rsquo;s less than half the 13 for&nbsp;Match Group&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mtch#NASDAQ">MTCH</a>), owner of Tinder, and shows just how out of love investors have fallen with Hello Group.
Despite all the gloom, there were still a few slightly encouraging signs in Hello Group&rsquo;s latest report. We&rsquo;ve already mentioned the global expansion, which is rapidly becoming an important new engine to this otherwise growth-challenged company.
Another intriguing boost could be coming on the policy front, as China worries about its plunging birthrates and aging population. The nation has begun rolling out a wide range of incentives for people to get married and have more children, and Hello Group hinted that such measures could ultimately benefit the company.
&ldquo;We&rsquo;re seeing some positive policy changes at the top,&rdquo; said CFO Peng Hui on the call, without elaborating. &ldquo;However, how effectively and quickly those policy changes will get filtered down into the consumer behavior in general, and more specifically into user spending on our platform, that, at this point, it&rsquo;s &ndash; I think it&rsquo;s still too early to tell. We&rsquo;ll see as the year progresses.&rdquo;
Like many other tech companies, Hello Group is also experimenting with artificial intelligence to draw users to its apps. As an example, officials said on the call that the company is experimenting with AI that can &ldquo;suggest ice-breaking topics to users by analyzing the image and text information on the potential (dating) candidate&rsquo;s profile page.&rdquo;
There wasn&rsquo;t any talk of AI-generated virtual soulmates, though perhaps that&rsquo;s somewhere down the road.
Analysts don&rsquo;t see any fast turnaround for Hello Group&rsquo;s sinking revenue, forecasting the figure will drop 11% this year before finally returning to a growth track in 2025. They have actually become more bullish on the company&rsquo;s depressed stock lately, with 15 out of 16 surveyed by Yahoo Finance in May rating it a &ldquo;buy&rdquo; or &ldquo;strong buy,&rdquo; up from just 8 who gave it similarly strong ratings of 14 surveyed in April. Perhaps that shows that sentiment may be turning back in favor of this wallflower company as it struggles to find some love from investors.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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Hello Gr

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화요일, 9월 03, 2024

사람들이 또한 지켜본다

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