INVESTORS BUSINESS DAILY – Aug 23 – China social app developer Momo delivered a strong Q2 earnings report this week but the stock plunged as expenses soared. The revenue rose 214% YOY to $312.2M, beating the consensus of $286M. But Momo said that expenses jumped 189% YOY to $246M. The increase was attributed to higher revenue sharing with broadcasters related to Momo's live video. It also attributed the higher costs to an increase in marketing and promotional expenses to enhance brand awareness, attract users and promote its live video service, among other reasons. Momo shares plummeted more than 20% to close at 36.02 on the stock market today.
by Brian Deagon
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Summarized by the Courtland Brooks team