momo.com Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 671.70 | Htqwflr | Pkhcvhms |
Momo.com’s Logistics Network Should Be a Difference Maker in the Long Term
Business Strategy and Outlook
We expect Momo.com to maintain its leading market share in Taiwan’s business-to-consumer, or B2C, direct sales e-commerce industry, due to a sizable lead in logistics infrastructure among peers that has indirectly led to more users, better convenience, and a higher operating margin than its closest peer. Momo.com is leveraging its logistics advantage and convenience as its long-term strategy and plans to build out two more major distribution centers by 2025, which should further differentiate its service between not only online competition but also brick-and-mortar retailers. The company is also adding new livestreaming and third-party, or 3P, platforms to its business, which could also further add incremental users.