Momo Lower Despite Q1 Beat

Momo Inc (ADR) MOMO shares are trading lower by $1.60 (3.5 percent) at $41.23 in Tuesday's session.

The Chinese holding company that operates Momo, a mobile-based social networking platform, failed to impress the Street with its Q1 EPS beat of 13 cents along with a revenue beat of $22.4 million. Keep in mind, the stock has doubled from its year-end close of $18.38, and reached $45.95 on Monday.

After a much higher open, Momo went only another dime to $45.18 before sharply reversing course. The ensuing decline has taken the stock to $38.85 and rebounded back into the $41.00 handle.

If the decline continues beyond the intraday low, there may be additional support at its May 12 low of $38.05.