Weibo's Underperformance: Declining Ad Revenue and Overvaluation ConcernsWe expect ad revenue YoY growth and adj. net profit YoY growth to remain negative in 4Q. We fine- tune estimates and reiterate Underperform rating on the weak growth trends. AI progress in search and advertising 1) Intelligent search MAU surpassed 70mn and query volume up 50%+ QoQ in 3Q. Co. upgrades its intelligent search capabilities in understanding users’ intent, content matching, engaging in conversations, and integrating content verification and summary features. 2) In ad business, Co. expanded AI use across the ad lifecycle, from creative generation to bidding optimization, covering text, image, video formats. AI-generated ad creatives now account for 30% of ad consumption in 3Q. Co. also implemented AI in livestreaming scenarios to extract highlights and converting into ad materials suitable for KOL distribution.