Weibo Corp Class A (9898) AI Stock Analysis

• Market Cap: HK$19.49B
• Dividend Yield: 8.06%
• Average Volume (3M): 270.08K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.51
• Revenue Growth: -1.40%
• EPS Growth: 22.37%
• Country: HK
• Employees: 4,982
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 3.27
• Shares Outstanding: 156,449,480
• 10 Day Avg. Volume: 312,234
• 30 Day Avg. Volume: 270,085
• PEG Ratio: -0.67
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 4.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$93.01
• Price Target Upside: 16.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$84.00 ▲(5.26% Upside)

Weibo Corp's overall stock score reflects a mixed financial performance with strong gross margins but declining revenues and cash flow issues. The technical analysis indicates bearish momentum, while the valuation suggests the stock may be undervalued with a high dividend yield. The earnings call provided a balanced outlook with positive user engagement trends but highlighted revenue challenges.

Positive Factors

User Engagement Growth

Increased user engagement indicates a strong platform presence and potential for higher ad revenue, supporting long-term growth.

AI Technology Integration

AI integration enhances ad efficiency and personalization, potentially increasing monetization and maintaining competitive advantage.

E-commerce Advertising Revenue Growth

Strong growth in e-commerce ad revenue reflects successful adaptation to market trends and diversification of revenue streams.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining growth, potentially impacting long-term financial health and market position.

Cash Flow Volatility

Significant cash flow volatility poses risks to liquidity and financial stability, potentially affecting operational capabilities.

Increased Income Tax Expenses

Higher tax expenses reduce net income, impacting profitability and cash reserves, which could constrain future investments.

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 generates revenue through several key streams, primarily through advertising services and value-added services. The advertising segment includes brand advertising and performance-based advertising, where companies pay to promote their products and services on the platform to reach a targeted audience. Additionally, Weibo earns revenue from its value-added services, which consist of features such as premium memberships, virtual gifts, and enhanced content capabilities for users and businesses. The company also benefits from strategic partnerships with various brands and advertisers, leveraging its extensive user base and engagement metrics to drive advertising sales. Overall, Weibo's earnings are significantly influenced by its ability to attract advertisers and maintain user engagement on its platform.

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. The company has improved its debt position, but consistent revenue growth and improved cash flow generation are critical for enhancing financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.75B	1.76B	1.84B	2.26B	1.69B
Gross Profit	1.38B	1.39B	1.39B	1.44B	1.85B	1.39B
EBITDA	544.34M	552.83M	695.15M	545.34M	676.73M	538.90M
Net Income	372.08M	300.80M	342.60M	85.56M	428.32M	313.36M
Balance Sheet
Total Assets	6.54B	6.50B	7.28B	7.13B	7.52B	6.34B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.35B	3.23B	3.17B	3.13B	3.50B
Total Debt	1.86B	1.91B	2.71B	2.48B	2.49B	2.43B
Total Liabilities	2.86B	2.93B	3.76B	3.74B	3.83B	3.45B
Stockholders Equity	3.60B	3.48B	3.40B	3.33B	3.59B	2.81B
Cash Flow
Free Cash Flow	0.00	578.43M	636.05M	367.40M	646.39M	706.82M
Operating Cash Flow	0.00	639.90M	672.82M	564.10M	814.02M	741.65M
Investing Cash Flow	0.00	-246.90M	-736.85M	-33.01M	-423.96M	-1.21B
Financing Cash Flow	0.00	-1.03B	21.69M	-91.14M	189.44M	741.96M

Weibo Corp Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 79.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9898, the sentiment is Neutral. The current price of 79.8 is above the 20-day moving average (MA) of 79.05, below the 50-day MA of 84.97, and above the 200-day MA of 79.29, indicating a neutral trend. The MACD of -1.23 indicates Negative momentum. The RSI at 45.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1698	73 Outperform	HK$202.70B	18.91	14.50%	0.97%	13.62%	80.52%
1024	71 Outperform	HK$291.51B	14.70	25.67%	―	11.37%	16.74%
9888	63 Neutral	HK$346.52B	39.19	3.29%	―	-2.92%	-57.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$19.49B	5.92	12.49%	8.06%	-1.40%	22.37%
2518	60 Neutral	HK$22.92B	13.92	6.05%	9.82%	-5.74%	-14.46%
2390	53 Neutral	HK$2.24B	20.58	2.39%	―	-23.80%	―

Weibo Corp Class A Corporate Events

Weibo Reports Q3 2025 Financial Results with Focus on AI and User Engagement

Weibo Corporation announced its unaudited financial results for the third quarter of 2025, highlighting a decline in net revenues by 5% year-over-year to $442.3 million. Despite the revenue drop, the company reported robust growth in user engagement and search queries, driven by advancements in AI technology and a revamped homepage interface. Weibo’s strategic focus on content marketing and AI-enhanced advertising processes has bolstered its monetization efforts, although advertising and marketing revenues saw a 6% year-over-year decrease. The company reported a net income of $221.1 million, with significant user base metrics, including 578 million monthly active users and 257 million daily active users.

Weibo Corporation to Announce Q3 2025 Financial Results on November 18

Weibo Corporation has announced that its board of directors will meet on November 18, 2025, to approve the company’s unaudited financial results for the third quarter of 2025. The results will be published on the same day on the Hong Kong Stock Exchange’s website and Weibo’s investor relations site. A teleconference call will be hosted by the management team to discuss the financial results and address questions from stakeholders, indicating the company’s commitment to transparency and stakeholder engagement.