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  "documentTitle": "Momo, Inc. (MOMO)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2018-06-27 00:00:00",
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  "notes": "This is a classic activist short thesis slide, combining qualitative reputational risks with quantitative data points on KOL abandonment and insider selling.",
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      "text": "We then apply a significantly discounted P/E multiple due to heightened risks surrounding the significant red flags that we’ve highlighted in this report. This brings us to a price target of $23 to $32/sh and represents 30%-50% downside risk",
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      "text": "Poor Risk/Reward Owning Momo While Insider Selling Intensifies And Fundamentals Are Strained",
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      "text": "Advertising Unlikely To Pick Up Anytime Soon",
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      "text": "Momo's history of crime... Key Opinion Leaders... Momo has always shied away...",
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      "kind": "paragraph",
      "text": "Twenty-one analysts... Despite deep analyst coverage... Momo insiders have sold $2 billion... Based on Spruce Point's detailed interviews...",
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      "kind": "quote",
      "text": "\"live cam site for sex and this is something it cannot wash off\" — Agent Interview #2. \"Lastly, mobile marketing business bottomed out in the fourth quarter, both the effective CPM and the number of that in question sold increased meaningfully from the third quarter. While we think there is still potential in driving further growth in eCPMs and increasing the ad world. We won’t get aggressive in doing so as the focus in 2018 is on building user engagement.\" — Q4 ‘2017 Earnings Call",
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      "text": "Spruce Point Believes Momo (Nasdaq: MOMO) Is A Strong Sell With 30%-50% Downside",
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