Mediaboss Marketing

Memo to momo investors: Your next hot momentum stock might be Momo, an extremely popular Chinese social networking and dating platform.

Momo is practically designed for you because its likely to burn up the charts after it starts trading in the U.S. on December 11.

What will give Momo MOMO, +0.00% its momo?

1. User growth is phenomenal: The popularity is reminiscent of Facebook FB, +0.36% in its early days.

2. Sales growth has been solid:. And theres room for much more. Thats because Momo has lined up a key ally in Alibaba Group Holding BABA, -1.78% , the Amazon.com AMZN, -1.32% of China. This alliance is going to help Momo build big ad revenue in the years ahead, as will Momos own efforts to woo merchants.

Amazon is testing plans to offer deliveries within an hour in New York City by using bike messengers. WSJs Shelly Banjo joins the News Hub. Photo: Getty.

Be warned, though. Momentum stocks can take as much as they can give. And Chinese social networking stocks have a nasty habit of disappointing investors. Given this history, theres a good chance Momo may trade below its initial public offering price after a flurry of interest that lasts a few weeks or months.

But first, what is Momo? Founded in 2011, Momo is a mobile instant messaging app that allows users to post profiles and pics. Think SnapChat meets Match.com meets Facebook. A key feature, which no doubt makes this a great dating and hook up app, tells users when others with common interests are nearby. Users also meet in groups and on message boards. Momo offers games as well.

The app is free. But users can upgrade to get VIP logos, advanced search, and the right to follow more users, for $18 a year.

Heres why Momo should be a hot stock:

Visit link:
Outside the Box: Chinese social app Momo is an IPO with mojo