Weibo Corp Class A (9898) AI Stock Analysis

• Market Cap: HK$19.70B
• Dividend Yield: 7.98%
• Average Volume (3M): 140.02K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.53
• Revenue Growth: 0.43%
• EPS Growth: 21.65%
• Country: HK
• Employees: 4,982
• Sector: Communication Services
• Sector Strength: 81
• Industry: Internet Content & Information
• EPS (TTM): 3.52
• Shares Outstanding: 156,449,480
• 10 Day Avg. Volume: 79,407
• 30 Day Avg. Volume: 140,018
• PEG Ratio: 0.34
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 2.25
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: HK$76.00
• Price Target Upside: -5.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$88.00 ▲(9.11%Upside)

Weibo Corp's stock is bolstered by strong technical indicators and an attractive valuation, despite mixed financial performance and persistent sectoral challenges. Stable user growth and strategic AI integration are positive, but liquidity management needs improvement.

Weibo Corp Class A Business Overview & Revenue Model

Company Description

Weibo 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 Money

Weibo 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 Financial Statement Overview

Summary

Weibo Corp exhibits strong gross profit margins and a stable equity base, yet faces challenges with declining revenues and profitability. Cash flow issues highlight liquidity management concerns, despite improved debt positions. Overall, the financial picture is mixed, with critical need for revenue growth and cash flow stability.

Income Statement

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

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

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.

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
EBITDA	552.83M	695.15M	545.34M	752.42M	538.90M
Net Income	300.80M	342.60M	85.56M	428.32M	313.36M
Balance Sheet
Total Assets	6.50B	7.28B	7.13B	7.52B	6.34B
Cash, Cash Equivalents and Short-Term Investments	2.35B	3.23B	3.17B	3.13B	3.50B
Total Debt	1.91B	2.71B	2.48B	2.49B	2.43B
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	-1.03B	21.69M	-91.14M	189.44M	741.96M

Weibo Corp Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 80.65 is above the 20-day moving average (MA) of 76.61, above the 50-day MA of 74.06, and above the 200-day MA of 69.53, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9898.

Weibo Corp Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9898	74 Outperform	HK$19.70B	7.57	10.79%	7.98%	0.43%	21.65%
Sector *	65 Neutral	£1.77B	10.05	-12.53%	3.71%	2.59%	-474.77%
8AHA	―	€2.91B	13.64	6.58%	8.30%	―	―
1024	80 Outperform	HK$300.76B	18.11	25.82%	―	9.42%	33.34%
9888	80 Outperform	HK$248.36B	8.71	9.84%	―	-1.73%	32.35%
1698	79 Outperform	HK$261.31B	26.29	14.34%	0.80%	4.16%	82.42%
2390	58 Neutral	HK$3.25B	―	-0.40%	―	-19.99%	98.97%

Weibo Corp Class A Corporate Events

Weibo Reports Q1 2025 Financial Results with Steady Growth

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

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.

Weibo Corporation Schedules Q1 2025 Financial Results Announcement

Weibo Corporation has announced a board meeting scheduled for May 20, 2025, to approve its unaudited financial results for the first quarter of 2025. The results will be published on May 21, 2025, after Hong Kong trading hours and before the U.S. market opens. A teleconference call will be held the same day to discuss the results, providing stakeholders with insights into the company’s financial performance and strategic direction.