Hello Group Inc. (NASDAQ:MOMO) is one of China’s leading mobile-based social and entertainment platforms, best known for building immersive digital experiences that connect millions of users through live streaming, social discovery, and online dating. Headquartered in Beijing, Hello Group has evolved from a single-purpose mobile messaging app into a diversified portfolio of consumer-facing social products, redefining how people engage, interact, and form relationships online in China and increasingly, across the globe.
Founded in 2011, Hello Group originally launched as MOMO, a location-based social networking platform designed to help users meet new people nearby. As one of the earliest innovators in China’s “social discovery” space, MOMO gained rapid popularity, eventually becoming one of the most downloaded mobile apps in the country. Over the years, the company expanded the platform to include interactive live video broadcasting, online communities, and gaming features—transforming MOMO into a full-featured entertainment ecosystem.
To complement and expand its reach in the dating vertical, Hello Group acquired Tantan in 2018, often referred to as “China’s Tinder.” Tantan became a key pillar in the company’s growth strategy, serving a younger demographic more focused on romantic connections and casual dating. The move positioned Hello Group as a dual-platform leader in both social discovery and dating—two of the highest monetizing app categories in China.
In 2020, the company officially rebranded from “Momo Inc.” to Hello Group Inc., reflecting its broadened vision of fostering diverse social interactions across multiple platforms and geographies. This shift marked the beginning of its foray into international markets, with apps like Soulchill leading its expansion in Southeast Asia and the Middle East. These global initiatives aim to replicate Hello Group’s domestic success in regions with similar mobile adoption trends and rising demand for live, interactive social experiences.
Today, Hello Group operates a multi-app ecosystem that serves tens of millions of monthly active users, enabling livestreaming, real-time chat, virtual gifting, and AI-powered matching technologies. It continues to lead in user engagement and monetization within China’s mobile entertainment sector, while strategically diversifying its revenue base and targeting high-growth international audiences.
As a publicly traded company listed on the NASDAQ under the ticker symbol MOMO, Hello Group has earned recognition not only for its innovative products but also for its consistent profitability and robust free cash flow. With a strong balance sheet, scalable infrastructure, and a data-driven approach to user engagement, Hello Group remains a formidable force in mobile social networking—both in China and beyond.
In an era where digital connection is more essential than ever, Hello Group Inc. stands at the intersection of social interaction, entertainment, and technological innovation, offering investors a unique opportunity to gain exposure to the rapidly evolving world of mobile social platforms.
Navigating Challenges: A Company in Transition, Not in Decline
In a May 2025 Seeking Alpha opinion, concerns were raised regarding Hello Group’s declining number of paying users and the continued drag from its acquisition of Tantan. According to the article, both MOMO and Tantan have experienced shrinking market shares, exacerbated by rising competition, saturation in the domestic market, and regulatory hurdles. Additionally, the author argues that the Tantan acquisition has been value-destructive, failing to generate returns above the company’s cost of capital.
However, these concerns—while notable—must be contextualized within a broader picture. Declining paying users in mature platforms are not unique to Hello Group; this trend is industry-wide across legacy social apps in China. What’s critical to understand is that Hello Group has recognized these structural challenges early and has already begun repositioning itself, both geographically and strategically, to capture higher-margin growth and diversify revenue streams beyond traditional live-streaming monetization models.
Hello Group’s overseas portfolio, particularly Soulchill, is gaining momentum in emerging markets such as Southeast Asia and the Middle East. In fact, the company aims to double its international business revenue to RMB 2 billion (approximately $280 million) in 2025, indicating its clear strategic intent to reduce dependence on its domestic user base. While many competitors remain focused on China’s saturated market, Hello Group is building an international footprint—an initiative that may prove prescient as the Chinese regulatory environment remains uncertain.
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Financial Strength Undervalued by the Market
Despite operational headwinds, Hello Group remains a cash-generating machine. Its trailing P/E ratio hovers around 7.7, and its market capitalization stands just under $1 billion—an unusually low multiple for a tech company with consistent profitability and positive free cash flow. Its tangible book value exceeds its current market cap, which is rarely seen among publicly traded social media firms. This valuation discount has made MOMO a compelling value play for patient investors seeking an asymmetric risk-reward setup.
Hello Group ended 2024 with strong financial health, maintaining a healthy balance sheet with no meaningful debt, ample liquidity, and the flexibility to reinvest, repurchase shares, or pursue high-growth international ventures. The company has also implemented operational cost reductions to protect margins while reallocating capital toward high-potential projects in AI and algorithmic matchmaking.
Additionally, the company’s forward guidance remains optimistic. Analysts project earnings of $285 million in 2025—representing a projected growth rate of over 13%, which outpaces many U.S.-listed internet content companies. This forecast suggests that despite short-term stagnation in user metrics, Hello Group’s monetization efficiency and cost discipline are working behind the scenes to bolster future earnings growth.
International Strategy Is Starting to Pay Off
Hello Group’s pivot toward international markets could be the catalyst that redefines its next phase of growth. With cultural similarities and rising smartphone penetration in regions like Southeast Asia and the Middle East, Soulchill and related products have started gaining traction. These new markets provide a vast, untapped user base for virtual gifting, live interaction, and paid features—all areas where Hello Group has strong technical know-how and proven monetization frameworks.
This diversification effort mitigates not only China-specific regulatory risks but also allows Hello Group to test and iterate on new features in environments with different user behaviors and lower competition. Unlike some global peers, Hello Group enters these markets with a lean cost structure, extensive experience in user retention, and scalable product architecture.
Furthermore, Hello Group’s recent updates to product offerings include AI-enhanced user discovery algorithms and improved live interaction tools. These innovations, while still in their early phases, align with industry-wide trends toward intelligent matchmaking, personalized virtual engagement, and gamified social experiences.
Valuation Rebound and Analyst Confidence
Current analyst price targets range from $8.25 to $13.00, implying an upside of over 34% to 110% from current levels around $6.00. AI-powered analytics platforms such as Danelfin also indicate a higher probability of outperformance over the next three months, assigning MOMO a relative strength advantage based on a combination of sentiment, valuation, and technical indicators.
The current low valuation not only reflects market skepticism but also presents a deep value opportunity for contrarian investors. With a forward P/E significantly below sector averages, positive earnings revisions, and potential for margin recovery, MOMO is set up for a potential rerating should revenue growth from international apps materialize or domestic monetization improve.
Conclusion: Hello Group Inc. Remains a Bullish Bet for the Patient Investor
Hello Group Inc. (NASDAQ: MOMO) may currently be battling declining metrics in its legacy apps, but the long-term investment thesis is far from broken. The company is aggressively pursuing revenue diversification through global expansion, holds one of the most undervalued positions in the Chinese tech sector, and continues to generate solid earnings. Critics are focused on short-term declines, but long-term investors recognize that Hello Group is in the midst of a strategic shift that could unlock significant shareholder value.
For investors seeking exposure to a profitable, cash-rich, and internationally expanding digital platform at a heavily discounted valuation, Hello Group represents a unique opportunity. The next phase of growth, driven by operational realignment and international momentum, may turn today’s skepticism into tomorrow’s surprise outperformance. Now may be the time to take a serious second look at MOMO.
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