Unusual activity in Momo Inc. (MOMO)
Momo Inc. (MOMO) reported earnings before the open today and the results looked great, with revenue, earnings and guidance all coming in ahead of analysts expectations.
But the reaction from investors was puzzling. After MOMO soared to new all-time highs at the open, a high-volume selloff pulled the stock back to the trading range it has occupied for many weeks. Here’s a chart of MOMO’s action since early October showing its hourly action. You can see the spike higher, the over-the-falls correction and the bottom just above 23.
The portfolio bought a half position in MOMO at 23.59, so our loss at this point is minuscule. We already have the stock on Hold, so our only choice is to either Hold or Sell. And the action has been so at variance with the earnings report that we’re inclined to put the stock on a short leash and see what happens in the aftermath of the U.S. election.
We’ll keep you posted.