Momo Inc. hit the lower rail of an upward sloped channel and got a bullish signal from the AI Trend Prediction tool
Chinese internet company Momo Inc. (Nasdaq: MOMO) has been rallying sharply since the beginning of 2019, but it saw a little pullback in the last few weeks. The pullback could be a buying opportunity as it brought the stock down to its 50-day moving average and the lower rail of an upward sloped trend channel.
The lower rail connects the lows from December and March and the stock just hit it last week. The upper rail is parallel and connects the highs from March and early April.
The daily stochastic readings reached oversold levels last week and that was the first time they had been there since December. The indicators made a bullish crossover on April 22 and that could be another good sign for the stock.
The Tickeron AI Trend Prediction tool generated a bullish signal for Momo on April 18 and that signal calls for a gain of at least 4% in the next month. The signal showed a confidence level of 59% and previous predictions on Momo have been successful 81% of the time.
Momo’s fundamentals are well above average with strong earnings growth, sales growth, and management efficiency measurements. Over the last three years the company has seen an average EPS growth of 165% per year for the last three years. Sales have grown by an average annualized rate of 158% over that same time period.
The company boasts a return on equity of 39.8% and a profit margin of 21%. The company is expected to announce earnings again on May 21, so you will want to be aware of that date.
Momentum Indicator for MOMO turns positive, indicating new upward trend
MOMO saw its Momentum Indicator move above the 0 level on June 04, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 50-day moving average for MOMO moved above the 200-day moving average on June 27, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MOMO advanced for three days, in of 265 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 192 cases where MOMO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MOMO moved out of overbought territory on June 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where MOMO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MOMO turned negative on June 30, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MOMO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MOMO broke above its upper Bollinger Band on June 05, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MOMO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.726) is normal, around the industry mean (11.909). P/E Ratio (4.702) is within average values for comparable stocks, (50.062). Projected Growth (PEG Ratio) (0.920) is also within normal values, averaging (3.572). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (0.743) is also within normal values, averaging (20.696).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MOMO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
a holding company, which through its subsidiaries operates a mobile-based social networking platform
Industry InternetSoftwareServices
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