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MOMO
Benzinga
4 hrs

Hello Group Turns To AI To Boost Slumping Revenue

1. Hello Group's revenue fell 2.6% in Q2, continuing a five-year decline. 2. AI features tested in Momo app aim to improve user engagement and retention. 3. International revenue contribution grew to 17%, but growth is expected to slow. 4. The company reported a net loss of 139 million yuan, its first since 2021. 5. Analysts remain mixed; 6 hold 'buy' ratings amid concerning consumer sentiment.

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FAQ

Why Bearish?

Ongoing revenue declines and a net loss are concerning, impacting investor sentiment negatively.

How important is it?

The core issues highlighted like revenue decline directly impact MOMO's performance.

Why Short Term?

Immediate impacts are seen with declining revenue and negative outlook, but potential AI improvements offer hope.

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