What's Going On With Chinese Social Media Firm Hello Group Stock Thursday?
Portfolio Pulse from Anusuya Lahiri
Hello Group Inc (NASDAQ:MOMO) reported a Q4 fiscal 2023 revenue decline of 6.5% Y/Y to $423.0 million, surpassing consensus estimates. Adjusted net income per ADS was $0.37, above consensus. Despite beating estimates, MOMO shares fell 17.47% in premarket trading. The company saw a decrease in MAUs and paying users for its Tantan and Momo apps. Revenue from live video service and value-added service declined, while mobile marketing and games saw growth. Hello Group announced a special dividend and extended its share buyback program. The company forecasts a revenue decrease for Q1. MOMO can be accessed via ECNS and IRBO ETFs.

March 14, 2024 | 11:15 am
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NEGATIVE IMPACT
Hello Group reported higher than expected Q4 fiscal 2023 earnings but saw a significant premarket stock price drop of 17.47%. The company also announced a special dividend and an extension of its share buyback program.
The significant premarket drop in MOMO's stock price, despite beating earnings estimates, suggests a negative short-term impact. The announcement of a special dividend and buyback program extension may not immediately offset the negative sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain access to Hello Group through the iShares MSCI China Small-Cap ETF (ECNS), which may see indirect effects due to Hello Group's performance.
As ECNS provides indirect exposure to MOMO, the ETF might experience some impact due to Hello Group's performance, though it's likely to be diluted across the ETF's diversified portfolio.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The iShares Robotics And Artificial Intelligence Multisector ETF (IRBO) offers indirect exposure to Hello Group, potentially impacting its performance.
Given IRBO's indirect exposure to MOMO, the ETF's performance may be influenced by Hello Group's recent earnings report and stock price movement, though the impact is likely to be minor.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50