Hello Group Turns To AI To Boost Slumping Revenue
Ongoing revenue declines and a net loss are concerning, impacting investor sentiment negatively.
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Ongoing revenue declines and a net loss are concerning, impacting investor sentiment negatively.
What happened, with direct paths to the underlying reporting
Hello Group's revenue fell 2.6% in Q2, continuing a five-year decline. AI features tested in Momo app aim to improve user engagement and retention. International revenue contribution grew to 17%, but growth is expected to slow. The company reported a net loss of 139 million yuan, its first since 2021. Analysts remain mixed; 6 hold 'buy' ratings amid concerning consumer sentiment.
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