Momo Inc (MOMO) AI Stock Analysis

NASDAQ: MOMOAI research summary: business, growth, valuation, analysts, bull and bear case.

MOMO AI stock analysis summary

AI Research

Momo Inc (Hello Group) provides mobile social and entertainment services in China, including the Momo and Tantan platforms. The company holds $8.52B in cash and short-term investments against $68.2M in total debt, but revenue contracted at a 5-year CAGR of -7.2% through FY2025. Shares trade at a trailing P/E of 4.8x while delivering a trailing twelve month return on equity of 10.2%.

Market cap
$673.7M
Revenue (TTM)
$10.10B
P/E
4.8x
fwd 6.4x
1Y return
-28.1%
S&P 500 16.8%
Avg. target
$7.79
66.2% vs last close

Bull case

  • Momo holds $8.45B in net cash with $8.52B in cash and short-term investments against only $68.2M in total debt as of June 30, 2026.
  • The stock trades at an EV-to-EBITDA of 2.7x and a trailing P/E of 4.8x, well below the US-listed Communication Services peer medians of 10.0x and 16.2x.
  • Analysts project EPS growth of 9.3% to $6.41 for the fiscal year ending December 31, 2026, with a mean price target of $7.79.

Bear case

  • Revenue contracted at a 5-year CAGR of -7.2% through FY2025, falling from $14.58B in FY2021 to $10.37B in FY2025.
  • In the latest quarter ended June 30, 2026, quarterly revenue fell 5.1% and quarterly earnings fell 12.5% year-over-year.
  • The stock underperformed broad markets over 1 year with a return of -28.1% compared to a 16.8% gain for the S&P 500.

What Momo does

Hello Group Inc., originally known as Momo Inc., is a Beijing-based provider of mobile social and entertainment services founded in 2011. The company operates the Momo platform, which integrates location-based social features, live talent shows, short videos, social games, audio chatrooms, and audio-visual experiences like mobile karaoke. Hello Group also manages Tantan, a social and dating application for romantic connections. Its platforms provide live video streaming, quick chat capabilities, and value-added services such as mobile marketing and mobile games to connect users based on location and shared interests.

Growth and profitability

Annual revenue decreased from $14.58B in FY2021 to $12.70B in FY2022, $12.00B in FY2023, $10.56B in FY2024, and $10.37B in FY2025, reflecting a 5-year CAGR of -7.2%. Gross margin contracted from 42.5% in FY2021 to 37.8% in FY2025, while operating margin moved from 13.8% in FY2021 to 13.1% in FY2025. Net income was -$2.91B in FY2021 before recovering to $1.48B in FY2022, $1.96B in FY2023, $1.04B in FY2024, and $804.0M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 5.1% year-over-year and quarterly earnings declined 12.5%. Over the trailing twelve months, revenue reached $10.10B with an operating margin of 9.6% and a profit margin of 11.0%.

MOMO income statement →

Balance sheet and cash flow

As of June 30, 2026, the company held $8.52B in cash and short-term investments against $68.2M in total debt, yielding net cash of $8.45B. Shareholders' equity stood at $10.88B and total assets were $13.34B, supported by a current ratio of 5.13 and a debt-to-equity ratio of 0.01. Operating cash flow in FY2025 was $1.15B with free cash flow of $671.8M. In FY2025, cash usage included $479.1M in capital expenditures, $749.2M in share buybacks, and $336.8M in dividends paid, contributing to a 5-year share count change of -20.7%.

MOMO balance sheet →

Valuation and performance

MOMO trades at a trailing P/E of 4.8x and a forward P/E of 6.4x, both lower than the median of its US-listed Communication Services peers at 16.2x and 14.1x, respectively. Its enterprise value stands at -$547.0M with an EV-to-EBITDA multiple of 2.7x, compared to the peer median of 10.0x. Price-to-sales is 0.1x versus the peer median of 0.8x. Over the past year, MOMO fell 28.1%, trailing the S&P 500 return of 16.8%. Over 5 years, the stock returned -43.4% compared to an 83.0% gain for the S&P 500.

MOMO key metrics →

What analysts expect

Wall Street coverage consists of 6 Strong Buy ratings, 0 Buy ratings, 1 Hold rating, and 0 Sell or Strong Sell ratings. The mean price target is $7.79, implying an upside of 66.2% from the last close of $4.69 on October 16, 2026. For the fiscal year ending December 31, 2026, analysts estimate revenue of $9.88B and EPS of $6.41, representing EPS growth of 9.3%. Over the last 4 quarters, the company beat EPS estimates 2 times. The next earnings date is December 9, 2026.

MOMO forecast and price target →

Key risks and what to watch

  • Net income dropped from $1.96B in FY2023 to $1.04B in FY2024 and $804.0M in FY2025, indicating continuing downward pressure on earnings.
  • Annual free cash flow declined from $1.70B in FY2023 to $671.8M in FY2025.
  • The company met or beat EPS estimates in only 2 of the last 4 quarters.
  • Shares trade 19.6% below their 200-day moving average and sit near the 52-week low of $4.61.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this MOMO AI stock analysis

This page is an AI-written research summary of Momo Inc (MOMO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MOMO income statement, MOMO balance sheet, MOMO key metrics, MOMO analyst forecast, MOMO chart. See the MOMO stock overview for the latest quote and news.

MOMO AI stock analysis FAQ

What is Hello Group's (MOMO) net cash position?

As of June 30, 2026, Hello Group held $8.52B in cash and short-term investments and $68.2M in debt, resulting in a net cash position of $8.45B.

How does MOMO's valuation compare to its industry peers?

MOMO trades at a trailing P/E of 4.8x and EV-to-EBITDA of 2.7x, below the median of its US-listed Communication Services peers at 16.2x and 10.0x, respectively.

What are analysts expecting for MOMO's earnings in FY2026?

For the fiscal year ending December 31, 2026, analysts estimate EPS of $6.41 on revenue of $9.88B, reflecting expected EPS growth of 9.3%.

When is MOMO's next earnings report date?

Hello Group's next earnings date is scheduled for December 9, 2026.

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