Hello Group Inc (NASDAQ: MOMO), the Beijing-based social networking company, experienced a significant surge of 5.08% in its stock price on Monday, driven by investors' recognition of its undervalued position and growth potential in the massive Chinese market.

Analysts have pointed out that Hello Group is trading at significantly discounted multiples compared to its peers, with a P/E ratio of just 5x trailing twelve-month (TTM) non-GAAP earnings and an EV/EBITDA ratio of 2x TTM. This undervaluation, coupled with the company's expertise in app development and successful offerings like Momo, Tantan, Hertz, and inSpaze, has created a compelling buying opportunity for investors.

Additionally, the recent visit of Apple CEO Tim Cook to Hello Group has sparked renewed interest in the company's prospects. Cook's positive statements about the company's future developments, particularly in the immersive reality space with its inSpaze application, have raised expectations for further growth and potential partnerships.

Moreover, Hello Group's ongoing stock repurchase program, recently upsized to $286.1 million, signals the management's confidence in the company's undervalued stock price. The buyback program is expected to drive stock price appreciation through increased demand for the company's shares.