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Weibo Corp Class A (HK:9898)
:9898
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Weibo Corp Class A (9898) AI Stock Analysis

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HK:9898

Weibo Corp Class A

(9898)

Rating:71Outperform
Price Target:
HK$102.00
▲(16.57% Upside)
Weibo Corp's stock score is driven by strong technical indicators and attractive valuation metrics. However, financial performance concerns, particularly in cash flow and profitability, along with sector-specific challenges, temper the overall outlook.

Weibo Corp Class A (9898) vs. iShares MSCI Hong Kong ETF (EWH)

Weibo Corp Class A 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 promoted feeds, 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 operates as a subsidiary of Sina Corporation.
How the Company Makes MoneyWeibo Corp generates revenue primarily through advertising and marketing services. The platform offers a variety of advertising solutions, including display advertising, promoted trends, and search engine marketing, allowing businesses to reach a broad audience across China. Another significant source of revenue is value-added services, which encompass membership-based subscription services and virtual goods sales. Additionally, Weibo collaborates with brand partners and content creators to enhance its monetization strategies, leveraging its vast user base to drive engagement and advertising effectiveness. Strategic partnerships and technological advancements also play a role in optimizing revenue streams and expanding market presence.

Weibo Corp Class A Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with positive growth in user engagement, AI integration, and advertising revenue. However, there are notable challenges in specific sectors such as FMCG, luxury, and gaming, along with uncertainty in the smartphone industry and pressure from high base comparisons.
Q2-2025 Updates
Positive Updates
User Growth and Engagement
In June 2025, Weibo's MAUs reached 588 million, and average DAUs reached 261 million, representing a net addition of 5 million users year-over-year.
Revenue Increase
Weibo's total revenues reached $444.8 million, up 2% year-over-year. Advertising and marketing revenues were $383.4 million, also up 2%.
Ad Product and Sales Strategy Success
E-commerce platform posted solid year-over-year revenue growth in the second quarter, benefiting from close partnership with major platforms during the June shopping festival.
AI Integration Enhancements
Weibo integrated AI into ad targeting and placement, leading to double-digit growth of feed ad offerings. Real-time bidding feed products saw strong improvement in performance and conversion metrics.
Intelligent Search Growth
Weibo's intelligent search MAUs surpassed 50 million in June, with a 60% improvement in user queries compared to previous periods.
Negative Updates
FMCG Sector Decline
The FMCG sector continued to see a year-over-year decline, with advertisers reallocating budgets and adjusting strategies.
Pressure from High Base Comparisons
Entering the third quarter, Weibo faces tough comparisons due to the high base from last year's Olympics, impacting year-over-year growth.
Challenges in the Gaming and Luxury Sectors
The gaming sector remained soft due to tough comparisons and lack of blockbuster releases. Luxury goods also faced continued pressure.
Uncertainty in the Smartphone Industry
The smartphone industry experienced uncertainty, with stabilized budgets but a significant decrease in overall sales.
Company Guidance
In the second quarter of 2025, Weibo reported several key financial and user engagement metrics. Monthly Active Users (MAUs) reached 588 million, while Daily Active Users (DAUs) hit 261 million. The company recorded total revenues of $444.8 million, marking a 2% year-over-year increase. Advertising revenues contributed significantly to this growth, totaling $383.4 million, also up 2% from the previous year. Non-GAAP operating income was reported at $161.8 million, reflecting a non-GAAP operating margin of 36%. Weibo's strategic focus was on user value, trending topics, and entertainment, with significant investments in enhancing recommendation and search functionalities through large language models. The platform's intelligent search product saw MAUs surpassing 50 million in June 2025, with a 60% increase in query volume, establishing a foundation for future growth in user engagement and monetization.

Weibo Corp Class A Financial Statement Overview

Summary
Weibo Corp shows strong gross margins and a solid equity base but faces challenges with declining revenues and profitability. Cash flow issues highlight liquidity management concerns, despite improved debt position.
Income Statement
65
Positive
Weibo Corp's income statement shows fluctuating revenue over the years, with the latest decrease from $1.76 billion to $1.75 billion. Gross profit margin remains strong at approximately 79%, demonstrating effective cost management. However, the net profit margin has decreased from 19.5% in 2019 to approximately 17.1% in 2024, indicating challenges in maintaining bottom-line profitability. The EBIT and EBITDA margins have also seen slight declines, suggesting increased operational costs or reduced operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects a stable equity base with a steady increase in stockholders' equity from $2.28 billion in 2019 to $3.48 billion in 2024. The debt-to-equity ratio has improved, indicating prudent financial management and lower leverage risk. The equity ratio has strengthened, showing a robust financial structure. However, total assets have decreased slightly, potentially constraining future growth.
Cash Flow
55
Neutral
Cash flow analysis reveals significant volatility, with operating cash flow dropping from $814 million in 2021 to zero in 2024. Free cash flow has also declined, highlighting potential challenges in liquidity management. The company shows inconsistency in converting net income to cash flow, which poses a risk to financial stability if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.76B1.75B1.76B1.84B2.26B1.69B
Gross Profit1.38B1.39B1.39B1.44B1.85B1.39B
EBITDA519.52M552.83M695.15M545.34M752.42M538.90M
Net Income358.33M300.80M342.60M85.56M428.32M313.36M
Balance Sheet
Total Assets6.66B6.50B7.28B7.13B7.52B6.34B
Cash, Cash Equivalents and Short-Term Investments2.08B2.35B3.23B3.17B3.13B3.50B
Total Debt1.86B1.91B2.71B2.48B2.49B2.43B
Total Liabilities3.15B2.93B3.76B3.74B3.83B3.45B
Stockholders Equity3.43B3.48B3.40B3.33B3.59B2.81B
Cash Flow
Free Cash Flow0.00578.43M636.05M367.40M646.39M706.82M
Operating Cash Flow0.00639.90M672.82M564.10M814.02M741.65M
Investing Cash Flow0.00-246.90M-736.85M-33.01M-423.96M-1.21B
Financing Cash Flow0.00-1.03B21.69M-91.14M189.44M741.96M

Weibo Corp Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price87.50
Price Trends
50DMA
80.34
Positive
100DMA
74.34
Positive
200DMA
71.93
Positive
Market Momentum
MACD
2.98
Negative
RSI
58.14
Neutral
STOCH
29.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9898, the sentiment is Positive. The current price of 87.5 is above the 20-day moving average (MA) of 83.99, above the 50-day MA of 80.34, and above the 200-day MA of 71.93, indicating a bullish trend. The MACD of 2.98 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 29.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9898.

Weibo Corp Class A Risk Analysis

Weibo Corp Class A disclosed 113 risk factors in its most recent earnings report. Weibo Corp Class A 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 Corp Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$21.98B8.1910.70%7.35%0.99%14.41%
60
Neutral
$44.05B4.50-12.81%4.08%1.86%-43.08%
€3.09B15.386.22%
79
Outperform
HK$245.73B8.2710.28%-1.69%42.04%
79
Outperform
HK$342.53B18.8025.22%10.72%17.05%
78
Outperform
HK$285.11B28.1413.99%10.25%84.17%
65
Neutral
HK$3.48B21.193.26%-22.45%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9898
Weibo Corp Class A
87.50
33.88
63.19%
DE:8AHA
Autohome Inc Class A
5.85
0.70
13.59%
HK:9888
Baidu, Inc. Class A
86.60
3.65
4.40%
HK:1024
Kuaishou Technology Class B
76.45
36.15
89.70%
HK:1698
Tencent Music Entertainment Group Class A
100.20
59.37
145.41%
HK:2390
Zhihu, Inc. Class A
13.26
4.91
58.80%

Weibo Corp Class A Corporate Events

Weibo Corporation to Announce Q2 2025 Financial Results on August 14
Jul 24, 2025

Weibo Corporation has announced that its board of directors will meet on August 14, 2025, to approve and release the company’s unaudited financial results for the second quarter and interim period ending June 30, 2025. The results will be published on the Hong Kong Stock Exchange’s website and Weibo’s own site after trading hours in Hong Kong and before the U.S. market opens. This announcement is significant as it provides stakeholders with insights into the company’s financial health and performance, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (HK:9898) stock is a Hold with a HK$71.00 price target. To see the full list of analyst forecasts on Weibo Corp Class A stock, see the HK:9898 Stock Forecast page.

Weibo Reports Q1 2025 Financial Results with Steady Growth
May 21, 2025

Weibo Corporation announced its unaudited financial results for the first quarter of 2025, highlighting steady revenue and user growth. The company reported net revenues of $396.9 million and a net income of $107.0 million, with significant contributions from its advertising and marketing sectors. Weibo’s AI-powered search function, Weibo Intelligent Search, saw increased user engagement and search queries, while the company continued to improve its operating efficiency and ad placement strategies.

The most recent analyst rating on (HK:9898) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on Weibo Corp Class A stock, see the HK:9898 Stock Forecast page.

Weibo Corporation Announces Successful Approval of 2025 AGM Resolutions
May 20, 2025

Weibo Corporation, a company incorporated in the Cayman Islands and controlled through weighted voting rights, announced that all proposed resolutions were approved at its 2025 Annual General Meeting of Shareholders held on May 20, 2025. This successful approval of resolutions reflects the company’s stable governance and may positively impact its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:9898) stock is a Hold with a HK$79.00 price target. To see the full list of analyst forecasts on Weibo Corp Class A stock, see the HK:9898 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025