Live-streaming video helped this Chinese hook-up app surpass US$10 billion in market value
Nasdaq-listed Momo, whose net income rose 60 per cent to a record US$129.9 million in the March quarter, now has a higher market capitalisation than Sina Corp
Momo, operator of a Chinese hook-up app turned live-streaming video platform with the same name, has breached the US$10 billion mark in terms of value, another beneficiary of the so-called Social+ business model of combining social networking in the world’s largest internet market.
The Nasdaq-traded company, whose net income rose 60 per cent to a record US$129.9 million in the March quarter, has seen its share price increase almost fourfold since its initial public offering in December 2014, when its shares sold at US$13.50 each.
That pushed up Momo’s market capitalisation to US$10.8 billion as of June 11, lifting it higher than the US$6.7 billion commanded by microblog operator Sina Corp and video-based social network YY’s US$7.1 billion. American live-streaming app provider Snapchat, by comparison, had a market value of US$16.6 billion.
“While other live-streaming platforms focus on the content of videos, Momo’s users are more interested in the people who provided the content, with the goal of establishing a connection and befriending them,” said a statement released by the company on Tuesday.
It said further growth in the sector is expected, driven by strengthening partnerships with talent agencies who will bring in more professional broadcasters and offer diverse, quality content on the platform.