After releasing its second quarter earnings on Tuesday morning of August 22nd, Momo Inc. (NASDAQ:$MOMO) saw its stock go down as much as 18%. While the China-based social media company had beat earnings per share expectations by $0.04 and revenue expectations by $26 million, it’s clear that investors and shareholders alike weren’t too pleased with Momo Inc.’s second quarter results. As of 12:19 PM EDT, the stock’s price was at $37.32.
Due to the fall, the company is now trading closer to June’s closing price of $36.94 – effectively destroying all the earnings it saw throughout July and most of August. It had been trading at around $46 at one point in early August. Just prior to its earnings report release Momo had closed at $45.08 on Monday, August 21st. It is quite evident that the earnings report was a blow to Momo’s momentum.
The company is a free, location-based services instant messaging application that is primarily used on smartphones and tablets. The app lets users talk to friends nearby, as well as strangers. Momo incorporated in July 2011, and launched its app a month later.
While it is likely that the company will climb back up, it may take a while.
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