Conclusion
- MOMO has just acquired its main competitor, Tantan, and that is using their tech to change the consumer relationship feel.
- The fresh new has just put-out Q2 money show MOMO is quite underrated.
- Tantan is actually a far greater application than simply Tinder, therefore we consider it will give for example wildfire.
Resource thesis
Within the , Momo stock (MOMO), now-known just like the Hello Classification, are trading from the $thirty-six for every single express. Getting reasons generally regarding the concern about the fresh Chinese government, MOMO today trading at just $ for each and every display in the course of composing. We believe that the relationship app sector has a lot of prospective, plus the product Good morning Classification is offering try beneficial. A market cover from only $dos.53 billion produces higher upside prospective with just minimal drawback and you can warrants a get out-of strong pick.
Disclaimer
I’m not probably discuss the relationships amongst the United states and you will Asia, and just how it means Chinese businesses placed in the us. One to disease try very cutting-edge and there is many coverage and you may feedback around, one another inside trying to leader and major information outlets.
With that said, we really do not imagine the enormous Chinese businesses, along with Alibaba (BABA), Bilibili (BILI), Baidu (BIDU), NIO (NIO), and you will MOMO would-be significantly impacted lasting. It seems that loads of big money will abide by us, evidenced of the Charlie Munger’s multiple-billion-dollar standing inside BABA.
I create, yet not, remember that United states-Asia affairs will get decrease the return to fair value. To counter this type of chance, invest with very long horizon. MOMO will likely grow at the same time, making the eventual manage even large.
Analysis
MOMO works in two key avenues, its core business, and you can Tantan.Continue reading