To say that Momo (NASDAQ: MOMO) has been on fire is an understatement. Up over 200% in the past 12 months, Momo is hands down one of the best performing tech stocks out there.
As with any hot tech company, it’s not hard to believe that the valuation has potentially gotten ahead of itself. The company currently trades at a lofty 14 times revenue. Any hiccup in the business can send the stock crashing. While Wall Street is looking at the future with rose-colored glasses, let’s take a look at some of the risks of investing in Momo.