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Spruce Point Capital Shorts Momo

Spruce Point Capital, a New York based short seller, has published a short call against the stock of Momo, a Chinese live-streaming video and social networking platform. In a release, the firm said: "Our research involved conducting 50 Mandarin based interviews around Momo's ecosystem, and reviewing countless local Chinese financial and business documents. We believe the 80% increase in share price YTD is unjustified, and based on average sell-side analyst targets calling for $54/sh, a current investment represents a poor risk/reward." Spruce Point identifies a price target of $23-$32 for Momo. The stock was down more than 5% at the end of trading yesterday...