MOMO Momo

$MOMO Isn't Hello Group basically a money market fund lmao? With interest rates in China currently so low, the market cap-to-interest income ratio is 19x—the interest alone perfectly covering the dividend—and there seems to be plenty of room for rates to rise in China. Oh, and this "money market fund" can even buy back its own shares; the net cash and interest income per share increase with every buyback, and as the stock price gets cheaper, the ROI of share buyback goes up. Right now, for every 1 yuan spent on buybacks, it nets over 0.7 yuan— Forget about the social networking apps. This is a money market fund with share repurchase upside lmao.

$MOMO Why I’m buying near 52-week lows: • Extremely compressed valuation around ~$5 • Profitable business with strong cash reserves • International revenue still growing strongly • Buybacks + history of special dividends • Analyst consensus remains bullish, with multiple Buy ratings and no meaningful Sell pressure • Recent weakness looks more like sentiment/China/ADR discount than business collapse • Risk/reward becomes very attractive near current levels Main risks: continued decline in core China business, ADR/geopolitical risk, and weak market sentiment. For me, this is a deep-value / mean-reversion setup with asymmetric upside if fundamentals stabilize. $MOMO

$MOMO is testing our patience more than our analysis at this point. Still hanging around the $4.80 area and refusing to completely fall apart. That is actually something I like seeing here. Technically, $4.80 remains the key support. A move back above $5.00 would make the chart look much healthier and could finally bring some momentum back. What makes the situation more interesting is the gap between the stock price and the actual company. Hello Group is still profitable, generated strong operating cash flow in Q2, had around $1.26B in cash and investments at the end of June, and continues buying back shares. Overseas revenue also grew 52% year over year. So while the stock price looks tired, the company itself is definitely not sleeping. Until then, we wait, collect patience points, and let MOMO decide when it wants to wake up 😄 Still optimistic. Still watching. Still here.