BRIEF: BofA downgrades Hello Group on livestreaming, dividend concerns
Bank of America lowered its rating on dating app Hello Group (MOMO.US) by two notches to “underperform,” citing weakness in China’s livestreaming market and the possibility that the company’s next dividend won’t meet investor expectation.
BofA said investors have high expectations for Hello Group’s next dividend, which the company may miss due to falling profits and Chinese limits on moving foreign currency out of the country, Seeking Alpha reportedon Wednesday. The company typically pays a dividend every April, including its most recent dividend of $0.54 per American depositary share (ADS) this year.
BofA said it is cautious on Hello Group’s core business due to weak consumer sentiment that is hurting China’s livestreaming market. Shares of Hello Group, whose main asset is its Momo app, fell 5.2% in Wednesday trade in the U.S.
By Doug Young
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