Key Highlights:
- Hello Group (MOMO, Financial) beats revenue expectations but faces a user base decline.
- Analysts project a potential 43.49% upside based on current price targets.
- Despite a suggested downside in GF Value, MOMO holds an "Outperform" status.
Hello Group Inc. (MOMO) recently announced its Q1 financial results, reporting a revenue of $347.4 million. This figure surpassed analyst expectations by $11.93 million, though it marked a 2% decline compared to the same quarter last year. The company's non-GAAP earnings per American Depositary Share (EPADS) stood at $0.32. However, the company faced challenges, particularly a reduction in its user base, with Tantan's monthly active users falling to 10.7 million and paying users declining to 0.8 million. Looking ahead, Q2 2025 revenue forecasts suggest a possible year-over-year decrease of up to 4.5%.
Wall Street Analysts Forecast
According to the projections from nine analysts, the average one-year price target for Hello Group Inc (MOMO, Financial) is $8.97. This target includes a high estimate of $13.02 and a low estimate of $7.01. The average price target indicates a substantial upside potential of 43.49% from the current stock price of $6.25. For further insights into these estimates, refer to the Hello Group Inc (MOMO) Forecast page.
In terms of stock recommendations, the consensus from nine brokerage firms positions Hello Group Inc (MOMO, Financial) with an average brokerage recommendation of 2.2, signifying an "Outperform" status. This rating is part of a scale where 1 indicates a Strong Buy and 5 signifies a Sell.
From a valuation perspective, GuruFocus's estimates suggest the GF Value for Hello Group Inc (MOMO, Financial) is $5.95 over the next year, implying a potential downside of 4.8% relative to the current trading price of $6.25. The GF Value is derived from the historical trading multiples of the stock, its business growth in the past, and future performance projections. For a comprehensive overview, visit the Hello Group Inc (MOMO) Summary page.
