Momo launched its Hong Kong listing

2022-06-18 0 By

Momo, a social networking platform renamed Zhiwen Group, has launched a secondary listing in Hong Kong, sponsored by Goldman Sachs and CICC.Momo declined to comment.Meng Yishan, an Internet analyst, believes momo can obtain broader financing channels and reevaluate its value if it chooses to go public in Hong Kong. However, whether momo can obtain a high valuation depends on its intrinsic value and growth.Momo was founded in 2011 and has several mobile apps including Momo, Tantan, Hertz and Peer-to-peer, according to public filings.Momo went public on The NASDAQ stock Exchange on December 12, 2014, with Morgan Stanley, Credit Suisse and JPMORGAN Chase as underwriters.It priced at $13.50 and closed its first day at $17.02, up more than 26%.But the stock has been on a roller coaster ride since then, hitting a low of $6.042 in February 2016 and doubling from 2017 to 2018, peaking at $48.766 in June 2018.Three months later, its shares had nearly halved from their peak, and over the next two years Momo gradually fell below its ipo price and hit bottom again.As of Feb. 14, Momo closed at $9.73 per share, giving it a market capitalization of $1.92 billion.Momo’s stock price fluctuates sharply, which may be related to momo’s poor performance in recent years.According to zhiwen Group’s third-quarter financial results released in November last year, quarterly revenue and net profit both declined: revenue of 3.76 billion yuan, down 0.2% year on year;Net profit was 400 million yuan, down 12.4% year on year.That was the same as in the previous two quarters.Momo also saw a quarter-on-quarter decline in monthly active users (MAUs) to 115.5 million, down 100,000 from the previous quarter, while its subsidiary Tantan saw revenue plummet after a year of rapid growth, leaving it with just 2.9 million paying users, its fourth straight quarterly decline.Thankfully, Momo has been trying to change over the years.In the past few years, Momo has moved into live streaming and enjoyed a first-mover advantage in the live tipping business.However, in the current red sea of live broadcasting, momo has no special advantages compared with the live broadcasting platforms focusing on games or shows due to the popularity of bayonets and the influence of the overall environment.On the product side, Momo has launched casual games such as Momo Fishing to appeal to younger users, but they haven’t taken off.Momo has also launched a number of new apps in an attempt to expand its market in an effort to ease competitive anxiety.Among them, the pan-entertainment face-changing APP “ZAO” was once a hit, but was soon removed due to privacy concerns.While other products, such as eye, MEET, pair, muncy, kaka, etc., all ended in vain.As the metasverse gets hotter, Momo seems to be having second thoughts about the metasverse.Wang Li, MOMo’s CEO, has said that with the further development of VIRTUAL reality, the maturing of VR/AR hardware into home use and the change of human-computer interaction patterns, new opportunities will inevitably arise.Read: Yu Fanghua