Summary
- MOMO has just received their only competitor, Tantan, and that’s through its technology to alter the user relationships sense.
- The newest recently put-out Q2 earnings prove MOMO may be very undervalued.
- Tantan are a far greater app than Tinder, and we also believe it will spread such wildfire.
Financing thesis
Into the , Momo inventory ( NASDAQ:MOMO ), now known as Good morning Group, is exchange from the $thirty-six each share. To own factors mostly concerning the concern with the new Chinese government, MOMO now trading just $ each share during creating. We think that the relationships application market has a lot of prospective, therefore the tool Good morning Category has to offer was worthwhile. Market limit regarding merely $dos.53 billion brings high upside potential with minimal drawback and you may deserves a get away from good pick.
Disclaimer
I am not going to talk about the matchmaking between the United states and you may China, and exactly how it makes reference to Chinese enterprises listed in the us. One to state is actually very state-of-the-art and there’s an abundance of coverage and feedback available to you, both in this looking to leader and biggest information retailers.
That being said, we really do not think the huge Chinese businesses, including Alibaba (BABA), Bilibili (BILI), Baidu (BIDU), NIO (NIO), and you can MOMO will be rather affected long lasting. It seems that loads of cash agrees with us, evidenced by Charlie Munger’s multiple-billion dollar standing inside BABA.
We do, however, remember that United states-China connections will get delay the newest go back to fair really worth. Читать далее “Good morning Classification: Algorithm Centered Relationship Application, Good Prospective, Rather Undervalued”