As an early entrant in China's stranger social networking sector, Hello Group Inc and its flagship product Momo once experienced rapid growth due to their unique positioning. However, as the social entertainment market undergoes profound changes, the company's long-relied traditional growth model is showing signs of fatigue. With user preferences shifting toward interest-based and deeper interactions, coupled with the emergence of new platforms, Momo's competitive advantages are gradually eroding, casting ongoing uncertainty over the group's business transformation and future growth trajectory.

Core Business Pressure and Growth Model Challenges Hello Group Inc's operational concerns primarily stem from sustainability challenges in its core revenue drivers. The company's income has long been heavily dependent on traditional value-added services like live streaming, which now exhibit sluggish growth. Meanwhile, fluctuations in its paying user base—the foundation of its performance—directly impact revenue stability due to changing user spending habits.

In exploring new growth avenues, the group's efforts have yet to yield clear results. Despite expanding into overseas markets and other innovative businesses, these emerging segments still contribute minimally to overall revenue, making it difficult to offset the growth gap in its main operations in the short term. Additionally, evolving industry regulations and standardization requirements continue to demand operational adjustments, further complicating business development.

Eroding Competitive Edge and Shifting Market Position At the product and market level, Momo faces increasingly fierce competition as its traditional strengths are being gradually undermined. A key challenge lies in its aging user base, with the platform struggling to attract younger generations—the primary source of social product vitality and spending potential. In contrast, newer social platforms have gained significant traction by aligning with youth interests, fostering community atmospheres, or leveraging algorithm-driven models.

A deeper issue is the stagnation in innovation of Momo's early success formula—a location-based, instant-interaction social model. As users increasingly prioritize deeper connections, content quality, and emotional resonance, Momo's icebreaker-focused features appear inadequate. Meanwhile, comprehensive content platforms with embedded social functions have broadened user choices, diverting attention and social needs across multiple dimensions, thereby diminishing Momo's uniqueness and indispensability in the broader internet social landscape.