Momo (MOMO) Is Today's Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Momo as such a stock due to the following factors:
- MOMO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $29.1 million.
- MOMO has traded 137,982 shares today.
- MOMO is up 3.7% today.
- MOMO was down 17.7% yesterday.
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More details on MOMO:
Momo Inc. operates as a mobile-based social networking platform in the People's Republic of China. The company's platform includes its Momo mobile application and various related features, functionalities, tools, and services that are provided to users, customers, and platform partners. Currently there are no analysts that rate Momo a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Momo has been 1.8 million shares per day over the past 30 days. Momo has a market cap of $2.4 billion and is part of the technology sector and internet industry. Shares are down 18.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Momo as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 43.10% over the past year, outperforming the rise in the S&P 500 Index during the same period.
- MOMO's very impressive revenue growth greatly exceeded the industry average of 20.7%. Since the same quarter one year prior, revenues leaped by 112.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for MOMO INC -ADR is currently very high, coming in at 80.44%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.53% trails the industry average.
- In comparison to the other companies in the Internet Software & Services industry and the overall market, MOMO INC -ADR's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Momo Ratings Report.
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