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Weibo (WB)
NASDAQ:WB
Top Page
(NASDAQ:WB)
68Neutral
Positive Factors
AI Integration
Management highlighted early positive impacts from AI integration, such as improved user engagement, search usage, and ECPM, though broader adoption is still in the early stages.
Dividend Policy
Weibo announced an annual dividend policy with an annual payout of US$200mn for FY24, translating into an approximately 8% dividend yield.
Financial Performance
Non-GAAP net income grew by 40% YoY to US$107mn, 9% ahead of consensus estimate, mainly attributable to effective opex control.
Negative Factors
Advertising Revenue
Overall ad demand remained under pressure, with advertising and marketing revenue declining by 3% YoY to US$386mn on a constant currency basis in 4Q24.
Advertising Space
The company is expected to continue losing market share in the advertising space, leading to a maintained Hold rating on the stock.
Market Share
Competition may hinder WB's ability to grow at an industry-leading level, potentially resulting in market share losses.
Weibo (WB) vs. S&P 500 (SPY)
Market Cap
$2.17B
Dividend Yield9.06%
Average Volume (3M)1.66M
Price to Earnings (P/E)7.6
Beta (1Y)0.65
Revenue Growth-0.29%
EPS Growth-12.84%
CountryUS
Employees4,982
SectorCommunication Services
Sector Strength82
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.40
Shares Outstanding156,449,480
10 Day Avg. Volume825,628
30 Day Avg. Volume1,661,074
Financial Highlights & Ratios
PEG Ratio-0.34
Price to Book (P/B)0.58
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda1.02
Forecast
1Y Price Target
$11.83Price Target Upside35.82% Upside
Rating ConsensusHold
Number of Analyst Covering4
Weibo Business Overview & Revenue Model
Company DescriptionWeibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover content in the People's Republic of China. It operates in two segments, Advertising and Marketing Services; and Value-Added Services. The company offers discovery products to help users discover content on its platform; self-expression products that enable its users to express themselves on its platform; and social products to promote social interaction between users on its platform. It also provides advertising and marketing solutions, such as social display advertisements; and promoted marketing offerings, such as Fans Headline and Weibo Express, as well as promoted trends and search products that appear alongside user's trends discovery and search behaviors. In addition, the company offers products, such as trends, search, video/live streaming, and editing tools; content customization, copyright contents pooling, and user interaction development; and search list recommendation, trends list recommendation, and Weibo app opening advertisements. Further, it provides back-end management, traffic support, and product solutions to MCNs, unions, and e-commerce partners; open application platform for other app developers that allows users to log into third-party applications with their Weibo account for sharing third-party content on its platform; and Weibo Wallet, a product that enables platform partners to conduct interest generation activities on Weibo, such as handing out red envelops and coupons. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of Sina Corporation.
How the Company Makes MoneyWeibo primarily generates revenue through advertising services. The company offers a suite of advertising solutions that allow businesses and marketers to reach a vast audience via promoted feeds, display ads, and social display ads. Key revenue streams include brand advertising and performance-based advertising, which are tailored to meet the needs of different advertisers. Additionally, Weibo earns revenue from value-added services such as VIP membership subscriptions, which offer users enhanced features. Strategic partnerships, particularly with Alibaba, enhance its advertising capabilities by leveraging data analytics and e-commerce integrations, contributing significantly to its earnings.
Weibo Financial Statement Overview
Summary
Weibo shows strong profitability with healthy margins and stable financial leverage. However, recent challenges in cash flow management present potential risks. Financial stability is evident through a solid balance sheet, but effective cash flow management is crucial moving forward.Income Statement
Weibo's income statement reveals stable revenue with a slight decline in 2024 compared to 2023, yet gross profit margins remain strong at approximately 79%, indicating effective cost management. The net profit margin improved to 17.1% in 2024 from 19.4% in 2023, showcasing effective cost control and operational efficiency despite lower net income. The EBIT and EBITDA margins are healthy, suggesting robust operating performance.72
Positive
Balance Sheet
Weibo maintains a solid balance sheet with a manageable debt-to-equity ratio of 0.53 in 2024, showing prudent financial leverage. The equity ratio is strong at 53.5%, indicating financial stability. The return on equity is at a moderate level of 8.6%, reflecting the company's ability to generate returns from its equity base.65
Positive
Cash Flow
The cash flow statement for Weibo illustrates challenges, with zero reported operating and free cash flow in 2024, potentially impacting liquidity. In previous years, free cash flow was positive, indicating that recent cash flow issues might be temporary. The operating cash flow to net income ratio was favorable in prior years, reflecting efficient cash generation historically.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.75B | 1.76B | 1.84B | 2.26B | 1.69B | Gross Profit |
| 1.39B | 1.39B | 1.44B | 1.85B | 1.39B | EBIT |
| 494.32M | 472.93M | 816.01M | 697.41M | 506.80M | EBITDA |
| 619.03M | 714.45M | 289.91M | 668.74M | 458.99M | Net Income Common Stockholders |
| 300.80M | 342.60M | 85.56M | 428.32M | 313.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.35B | 3.23B | 3.17B | 3.13B | 3.50B | Total Assets |
| 6.50B | 7.28B | 7.13B | 7.52B | 6.34B | Total Debt |
| 1.91B | 2.71B | 2.42B | 2.43B | 2.43B | Net Debt |
| 14.89M | 120.90M | -269.20M | 11.25M | 613.67M | Total Liabilities |
| 2.93B | 3.76B | 3.74B | 3.83B | 3.45B | Stockholders Equity |
| 3.48B | 3.40B | 3.33B | 3.59B | 2.81B |
| Cash Flow | Free Cash Flow | |||
| 578.43M | 636.05M | 367.40M | 646.39M | 706.82M | Operating Cash Flow |
| 639.90M | 672.82M | 564.10M | 814.02M | 741.65M | Investing Cash Flow |
| -246.90M | -736.85M | -33.01M | -423.96M | -1.21B | Financing Cash Flow |
| -996.06M | 21.69M | -91.14M | 189.44M | 741.96M |
Weibo Technical Analysis
Positive
8.71
Price Trends
8.56
Positive
8.78
Positive
8.30
Positive
Market Momentum
0.08
Negative
62.51
Neutral
79.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WB, the sentiment is Positive. The current price of 8.71 is above the 20-day moving average (MA) of 8.13, above the 50-day MA of 8.56, and above the 200-day MA of 8.30, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.51 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WB.
Weibo Risk Analysis
Weibo disclosed 113 risk factors in its most recent earnings report. Weibo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Weibo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $22.25B | 12.14 | 47.49% | ― | 19.35% | ― | |
77 Outperform | $31.97B | 9.96 | 9.14% | ― | -2.60% | 16.71% | |
77 Outperform | $21.80B | 23.94 | 14.37% | 1.22% | 4.59% | 83.27% | |
75 Outperform | $20.01B | 167.79 | 5.77% | ― | 64.12% | ― | |
68 Neutral | $2.17B | 7.59 | 8.74% | 9.06% | -0.29% | -12.84% | |
64 Neutral | $15.39B | ― | -23.97% | ― | 14.91% | 59.90% | |
60 Neutral | $13.80B | 7.25 | -2.76% | 3.77% | 2.19% | -42.55% |
* Communication Services Sector Average
Performance Comparison
WB
Weibo
8.71
-0.02
-0.23%
BIDU
Baidu
91.09
-18.33
-16.75%
SNAP
Snap
9.10
-6.52
-41.74%
TME
Tencent Music Entertainment Group
14.69
0.33
2.30%
PINS
Pinterest
32.93
-9.09
-21.63%
RDDT
Reddit Inc Class A
112.84
50.50
81.01%
Weibo Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: -9.83%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment, with positive aspects such as stable overall revenue, growth in value-added services, and strong user metrics, balanced by challenges in advertising revenue and industry-specific struggles. The company is optimistic about future growth through AI integration and strategic investments.Q4-2024 Updates
Positive Updates
Stable Revenue and Growth in Value-Added Services
Total revenue for full year 2024 reached USD 1.75 billion, relatively flat year-over-year or an increase of 1% on a constant currency basis. Value-added service revenue increased by 13% year-over-year, benefiting from the upgrade and restructuring of membership services.
Strong User Metrics
In December 2024, Weibo's MAU reached 590 million and average DAUs reached 260 million, indicating solid user engagement.
Profitability and Cash Flow
Non-GAAP operating income for full year 2024 reached USD 584.1 million, representing a non-GAAP operating margin of 33%. Cash provided by operating activities was USD 639.9 million.
AI Integration and Development
Weibo made significant progress in AI applications, particularly in intelligent search and social interaction, which are expected to enhance user experience and operational efficiency.
Annual Cash Dividend Announcement
The Board of Directors approved an annual cash dividend of USD 0.82 per ordinary share for the fiscal year 2022, totaling approximately USD 200 million.
Negative Updates
Advertising Revenue Decline
Total ad revenue for full year 2024 reached USD 1.5 billion, a decrease of 2% year-over-year, mainly due to a decline in the online game, cosmetics, personal care, and luxury sectors.
Macroeconomic and Industry Uncertainties
Despite some government stimulus policies, the broader set of economic measures are yet to translate into a significant recovery of advertiser and consumer markets, particularly affecting discretionary categories.
Gaming Industry Uncertainty
The gaming industry's ad revenue saw a year-over-year decline due to a high base effect and a lack of major game launches in 2024, creating uncertainty for 2025.
Company Guidance
During the call, Weibo provided guidance on various metrics for the fourth quarter and fiscal year 2024. The company reported a total revenue of USD 456.8 million for Q4, with ad revenue reaching USD 385.9 million and value-added service revenues at USD 71 million. The non-GAAP operating income for Q4 stood at USD 136.2 million, reflecting a non-GAAP operating margin of 30%. For the full year, Weibo's total revenue was USD 1.75 billion, with ad revenue of USD 1.5 billion and value-added service revenue at USD 256 million. The full-year non-GAAP operating income was USD 584.1 million, representing a non-GAAP operating margin of 33%. In terms of user metrics, Weibo's monthly active users (MAU) reached 590 million in December 2024, while daily active users (DAUs) were 260 million. Looking ahead to 2025, Weibo plans to focus on user growth, content ecosystem, and operating efficiency, alongside continued investments in AI technology to enhance product capabilities and drive long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.