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MoM
(Month-over-Month)
MoM measures the change in a metric from one month to the next, calculated as (Current Month - Prior Month)/Prior Month. While useful for spotting short-term trends, MoM is prone to seasonality - retail spikes 30% December to January don't indicate real growth.
Economists use MoM data for early indicators (housing starts, unemployment), but annualize volatile figures (like inflation) for meaningful comparisons. In corporate finance, MoM burn rate tracks startup runway, while SaaS companies monitor MoM recurring revenue growth (ideal 10-15%). Unlike YoY comparisons, MoM reveals immediate momentum but requires seasonal adjustment for valid analysis. Day traders sometimes overemphasize MoM price changes, though most securities exhibit 50%+ MoM volatility annually.
Economists use MoM data for early indicators (housing starts, unemployment), but annualize volatile figures (like inflation) for meaningful comparisons. In corporate finance, MoM burn rate tracks startup runway, while SaaS companies monitor MoM recurring revenue growth (ideal 10-15%). Unlike YoY comparisons, MoM reveals immediate momentum but requires seasonal adjustment for valid analysis. Day traders sometimes overemphasize MoM price changes, though most securities exhibit 50%+ MoM volatility annually.