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Is It Too Late To Buy Momo Inc (NASDAQ:MOMO)?

Momo Inc (NASDAQ:MOMO), a internet company based in China, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGS. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Momo’s outlook and value based on the most recent financial data to see if the opportunity still exists. View our latest analysis for Momo

What is Momo worth?

Great news for investors – Momo is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $43.22, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Momo’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Momo look like?

NasdaqGS:MOMO Future Profit Dec 23rd 17
NasdaqGS:MOMO Future Profit Dec 23rd 17

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Momo’s earnings over the next few years are expected to increase by 86.40%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since Momo is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on Momo for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Momo. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Momo. You can find everything you need to know about Momo in the latest infographic research report. If you are no longer interested in Momo, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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