Weibo downgraded to Underperform from Buy at BofA

BofA double downgraded Weibo to Underperform from Buy with a price target of $10, down from $19.50. Compared with major advertising platforms, Weibo may be more vulnerable to macro and competition risks, the analyst tells investors in a research note. The firm estimates most of Weibo’s ad is from consumption related verticals, and has brand promotion purpose. It expects brand promotion ad spend to remain soft in 2024 due to macro and advertisers’ shift towards performance-based ads. BofA is also concerned about competition from short video and other social channels.