One of this week's biggest losers was Momo (NASDAQ:MOMO), tumbling 18.8% after posting fresh financials. Revenue and earnings more tripled in the second quarter, exceeding expectations on both fronts, but sequential stagnancy in paying users raised concerns about Momo's long-term prospects. The Chinese dating-app specialist has been on fire since the it transformed itself into a leading live video platform with broader appeal. Growth has been scorching, with revenue climbing 215% to $312.2 million in last week's report, well above its earlier guidance calling for a 186% to 191% top-line surge. However, closing out the period with the same 4.1 million paying users it had during this year's first quarter proved problematic for a company that otherwise remains one of this year's hottest performers. Momo stock has soared 94% so far this year, even after last week's slide.

Can Momo Stock Bounce Back After Last Week's 19% Drop? -- The Motley Fool

In 2016, 68% of Momo revenue came from its live video offering. This was a huge increase from the 1% this category accounted for in the previous year. This massive shift occurred as Momo transitioned away from its online dating business. The trend has accelerated in the first quarter of 2017 as 80% of revenue came from live video. The initial content on the company's live video platform was limited to online concerts and music shows in a professional studio environment.

How Is Momo Delivering Triple-Digit Revenue Growth Year After Year? -- The Motley Fool

First, Momo’s costs and expenses have been increasing lately, and during the last two quarters they have outpaced revenue growth and monthly active user growth. This is something investors will want to pay close attention to throughout the remainder of the year. Then there is the chart. Because I don’t want to catch a falling knife, I want to wait and see if MOMO stock can build a base before considering stepping in. As you can see above, the stock has important support between $33 and $35 (the black lines). If it can build a base in that area over the next week or two, it could be time to start buying again.

Is the Dip in Momo Inc (ADR) (MOMO) Stock an Opportunity?

This was not the case for Momo. The company even raised its guidance to $337-342 million, compared to the $307.13 million consensus, about a 10% raise. Besides that, it means a 115-118% growth on the year.

Sell Momo? No No! - Momo (NASDAQ:MOMO) | Seeking Alpha

Monthly active users (MAUs) rose 22% annually to 91.3 million last quarter, but that's still tiny compared to bigger social media apps like Weibo (NASDAQ:WB) and Tencent's (NASDAQOTH:TCEHY) WeChat -- which respectively have 361 million and 963 million MAUs. As Weibo and WeChat expand their ecosystems into the live-streaming market, they could eventually marginalize Momo.

Will Momo Stock Sink or Swim? -- The Motley Fool