Hello Group Shares Tumble Following Unexpected Quarterly Loss

Hello Group Inc. (A) jolted investors with its second-quarter earnings report, revealing a surprising net loss?its first since 2021. The operator of the Momo and Tantan dating apps fell short of anticipated profits, raising questions about the underlying causes of this setback and whether its international operations offer a viable path to recovery.

Amidst domestic challenges, one segment of the business is experiencing remarkable growth. The company’s international revenue surged by 72.7 percent, reaching 442.4 million yuan. This impressive performance means overseas operations now contribute 17 percent to total revenue, a significant increase from less than 10 percent just one year ago.

Domestic Market Contraction Weighs Heavily

The core issues behind the disappointing results stem from significant pressure in... Read more...