The Chinese government has apparently swiped left on Chinese dating app Momo.
Shares of Chinese dating app Momo Inc. (MOMO) - Get Momo Inc Sponsored ADR Class A Report , also known as "China's Tinder," plunged Monday after the company announced that some Chinese app stores have been directed by Chinese government authorities to remove its Tantan dating app.
As of 2 pm ET, the stock had recovered somewhat, though was still down more than 7%, or $2.70 a share, at $34.17 on the Nasdaq Stock Exchange.
In a statement, Momo said it is communicating with the authorities and "will fully cooperate to get Tantan restored to the markets as soon as possible." However, "Pending restoration of the Tantan app in the relevant app stores in China, the Company's ability to attract new Tantan users will be adversely affected."
Analysts at Jefferies in a note to clients said the suspension isn't unusual in China. The research firm noted that such suspensions typically last between two weeks and a month. They argued that the action should not have a material impact on Momo's revenue since the app accounts for only about 10% of total sales -- and existing users aren't affected by the new restrictions.
For 2018, Momo said it earned net income of US$405.5 million, or 96 cents a share, on revenue of US$1.95 billion.
Momo (Chinese: 陌陌; pinyin: mò mò) is a Chinese hook-up app turned live-streaming video platform with the same name.
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