YY - Hello Group Q1 Earnings: Weak Guidance Has Been Priced In
2024-05-29 09:05:52 ET
Summary
- Hello Group is expecting its top-line contraction in RMB terms to worsen from -9.2% YoY in Q1 2024 to -13.9% YoY for Q2 2024 as per its guidance.
- Hello Group's current valuations are undemanding, as the stock's forward P/E and EV/Sales multiples are low on both absolute and relative terms.
- I have a Hold rating for MOMO, as the stock's valuations have factored in its poor second quarter revenue guidance.
Elevator Pitch
I rate Hello Group Inc. ( MOMO ) shares as a Hold.
My earlier write-up, published on October 13, 2023, was focused on Hello Group's shareholder capital return and specific user metrics. With the current update, I review MOMO's latest quarterly results and its revenue guidance....
Hello Group Q1 Earnings: Weak Guidance Has Been Priced In