“We stay with our Overweight rating on Weibo and maintain our $75 target. Positives: User engagement is still solid, and MAU/DAU reached 462mn/200mn. Weibo remains a key destination for the social media marketing budgets of global top-ranking brands, which bolstered its KA ads growth ahead of SME ads growth. Social media content saw continued improvement with MCNs doubling y/y to 2,600. Things to Monitor: SME ad revenue growth slowed to 14% y/y (vs. 35% in 3Q18) due to macro headwinds, gaming regulation and competition (more inventories). Alibaba’s disciplined marketing strategies affected Weibo’s related-party revenues, which we expect will linger into 1Q19. Yizhibo’s consolidation generated c.2ppt margin impact, based on our estimates.”,” the firm’s analyst commented.
A number of other research analysts have also issued reports on the company. BidaskClub lowered Weibo from a strong-buy rating to a buy rating in a report on Wednesday, March 6th. Deutsche Bank lowered Weibo from a buy rating to a hold rating in a report on Wednesday, March 6th. China Renaissance Securities reaffirmed a hold rating on shares of Weibo in a report on Wednesday, March 6th. Citigroup lowered Weibo from a buy rating to a hold rating in a report on Wednesday, March 6th. They noted that the move was a valuation call. Finally, ValuEngine lowered Weibo from a hold rating to a sell rating in a report on Friday, March 1st. One analyst has rated the stock with a sell rating, eleven have given a hold rating and six have assigned a buy rating to the company. Weibo presently has a consensus rating of Hold and a consensus target price of $82.11.
Weibo (NASDAQ:WB) last issued its quarterly earnings results on Tuesday, March 5th. The information services provider reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.05. The company had revenue of $481.88 million for the quarter, compared to analyst estimates of $481.52 million. Weibo had a return on equity of 37.53% and a net margin of 33.27%. The company’s quarterly revenue was up 27.7% compared to the same quarter last year. During the same period last year, the company earned $0.64 earnings per share. Sell-side analysts anticipate that Weibo will post 2.93 EPS for the current year.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Geode Capital Management LLC boosted its position in Weibo by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 151,136 shares of the information services provider’s stock worth $8,789,000 after acquiring an additional 2,401 shares during the period. Norges Bank acquired a new stake in Weibo during the 4th quarter worth about $36,324,000. Dimensional Fund Advisors LP boosted its position in Weibo by 5.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 210,900 shares of the information services provider’s stock worth $12,338,000 after acquiring an additional 10,233 shares during the period. FMR LLC boosted its position in Weibo by 21,207.0% during the 4th quarter. FMR LLC now owns 42,614 shares of the information services provider’s stock worth $2,490,000 after acquiring an additional 42,414 shares during the period. Finally, Nordea Investment Management AB boosted its position in Weibo by 12.9% during the 4th quarter. Nordea Investment Management AB now owns 57,829 shares of the information services provider’s stock worth $3,379,000 after acquiring an additional 6,613 shares during the period. 24.36% of the stock is currently owned by hedge funds and other institutional investors.
Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform.
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