Weibo (WB) AI Stock Analysis

• Market Cap: $2.82B
• Dividend Yield: 6.87%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.50
• Revenue Growth: 1.49%
• EPS Growth: 14.94%
• Country: US
• Employees: 4,982
• Sector: Communication Services
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): 0.54
• Shares Outstanding: 156,449,480
• 10 Day Avg. Volume: 1,467,282
• 30 Day Avg. Volume: 1,060,916
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $12.56
• Price Target Upside: 5.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $13.00 ▲(8.88% Upside)

Weibo's overall stock score is driven by strong technical indicators and a favorable valuation, suggesting potential for growth. Financial performance is solid, though cash flow issues warrant attention. The earnings call provided a balanced view with both growth opportunities and sector-specific challenges.

Positive Factors

Revenue Growth

Weibo reported a better-than-expected 2Q25 with revenues increasing by 1.6% year over year to US$444.8 million.

User Engagement

Weibo's new Intelligent Search has captured 50 million monthly active users, enhancing user experience and long tail searches.

Valuation

Weibo currently trades at 6x FY25E non-GAAP PE, which offers ample safety margin versus peers’ average (19x).

Negative Factors

Ad Spending

Advertiser sentiment remains mixed, with cautious ad spending in verticals such as cosmetics, personal care, and games.

Advertising Challenges

The outlook of the advertising business remains challenging in 2H25, due to tough comparison and uncertainty in certain verticals.

Growth Limitations

Weibo's reliance on brand ads and a less advanced ad tech stack limits its growth potential.

Weibo Business Overview & Revenue Model

Company Description

Weibo Corporation (WB) is a leading social media platform in China, often referred to as the 'Twitter of China.' Founded in 2009, Weibo allows users to post and share short messages, photos, and videos, facilitating communication and interaction among its vast user base. The platform operates primarily in the social networking sector, offering services such as microblogging, social networking, and user-generated content. Weibo also provides businesses with marketing and advertising solutions to engage with users effectively.

How the Company Makes Money

Weibo generates revenue primarily through advertising services, which account for a significant portion of its earnings. The company offers various advertising products, including display ads, promoted posts, and brand partnership solutions, allowing businesses to reach targeted audiences. Additionally, Weibo monetizes its platform through value-added services, which include features like VIP memberships and the sale of virtual goods. Partnerships with other companies, such as collaborations with entertainment and media firms for promotional activities, enhance its revenue streams. The company also benefits from its large user base, which attracts advertisers looking for exposure in a densely populated digital marketplace.

Weibo Financial Statement Overview

Summary

Weibo's financial performance shows strong profitability and stable balance sheet, but recent cash flow challenges are concerning. Income statement and balance sheet scores are relatively high, with effective cost management and manageable leverage. However, cash flow issues need attention, lowering the overall financial performance score.

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.

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.

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.

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	619.03M	714.45M	289.91M	668.74M	458.99M
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	2.42B	2.43B	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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 11.94 is above the 20-day moving average (MA) of 10.22, above the 50-day MA of 9.93, and above the 200-day MA of 9.01, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 78.42 is Negative, neither overbought nor oversold. The STOCH value of 94.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WB.

Weibo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	79 Outperform	$36.04B	27.66	14.07%	0.71%	10.66%	84.89%
PINS	78 Outperform	$24.33B	12.79	48.08%	―	17.00%	901.05%
BIDU	75 Outperform	$31.19B	8.91	9.85%	―	-1.33%	32.92%
RDDT	73 Outperform	$46.13B	208.07	10.11%	―	69.97%	―
WB	71 Outperform	$2.82B	8.18	10.77%	6.87%	1.49%	14.94%
Sector *	64 Neutral	£1.85B	8.91	-12.54%	3.76%	1.42%	-47.57%
SNAP	59 Neutral	$12.08B	―	-26.42%	―	13.18%	54.39%