- Momo (NASDAQ:MOMO) drops 9.9% after announcing that some Chinese app stores have removed its Tantan.
- The removals were due to directions from Chinese governmental authorities.
- Momo says it's communicating with the authorities and will fully cooperate to get Tantan restored to the markets as soon as possible.
- Analyst insight: Jefferies says the temporary suspension shouldn't have a material impact on Momo's revenue since the app accounts for only 10% of overall sales and existing users aren't affected by the new restrictions.
- The firm expects near-term pressure until visibility clears for the resumption timeline. Jefferies says suspensions typically last two weeks to a month.