Market Overview

A Quick Look At Weibo's Q3 Beat

Share:
A Quick Look At Weibo's Q3 Beat
Related
58 Biggest Movers From Yesterday
Weibo shares are trading lower after Morgan Stanley downgraded the company's stock from Overweight to Equal-Weight.
Market Mispricing Hides Weibo's Strong Fundamentals (Seeking Alpha)

Weibo Corp (ADR) (NASDAQ: WB) is a Chinese social media platform that allows users to blog. Launched in 2009 by SINA Corp (NASDAQ: SINA), it was spun off as an independently traded public company in 2014. In the wake of the company's third-quarter release on Tuesday, Jefferies offered its quick take on the results.

The Analyst

Weibo's third quarter results were reviewed by Jefferies analyst Karen Chan in a Tuesday note.

The Rating

Jefferies maintained its Buy rating and $105 price target on shares of Weibo.

The Thesis

Weibo delivered strong quarterly results, with revenue and non-GAAP net profit exceeding consensus estimates by 7 percent and 9 percent, respectively, according to Jefferies. 

The outperformance, according to Jefferies, came about due to strong demand from KA and SME advertisers, which together contributed revenues of $251.5 million, up 70.6 percent. Additionally, Alibaba Group Holding Ltd (NYSE: BABA)-related ad revenues also exceeded forecasts, Chan said. (See Chan's track record here.) 

Among key metrics, monthly average users grew at a rate of 27 percent to 376 million, in line with the Jefferies' estimates. The midpoint of the company's fourth-quarter revenue guidance was 5 percent above the consensus estimates, Chan said. 

Price Action

Weibo shares were down 3.84 percent to $95.71 at the time of writing. The stock has been on a tear since the beginning of 2017 and has more than doubled in the year-to-date period, with 115.8 percent in gains. Since the start of the third quarter, the gain is an even more staggering 244.9 percent, although the stock has seen a slight pullback since the start of September.

Related Links:

Bernstein Starts Chinese Internet Names: Most Initiated At Underperform

Morgan Stanley: Chinese Internet Stocks Must Boost Investments, User Retention, Geographic Reach

 

Latest Ratings for WB

DateFirmActionFromTo
Jan 2019Morgan StanleyDowngradesOverweightEqual-Weight
Aug 2018JP MorganMaintainsOverweightOverweight
Aug 2018JefferiesMaintainsBuyBuy

View More Analyst Ratings for WB
View the Latest Analyst Ratings

Posted-In: Alibaba Ani Tu Jefferies Karen Chan WeiboAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (SINA + BABA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

USD/JPY Forecast: Resilience To End Soon?

Up Nearly 50% This Year, Is There Still Upside In Salesforce?