Weibo Corp (WB)
NASDAQ:WB
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(NASDAQ:WB)
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Rating:60Neutral
Price Target:
$11.50
▲(14.09% Upside)
Action:ReiteratedDate:11/19/25
Weibo's overall stock score reflects a mix of strengths and challenges. The company's strong valuation and profitability are offset by technical weakness and cash flow concerns. The earnings call provided a mixed outlook, with promising user engagement and AI initiatives but declining revenues in key sectors. Investors should monitor cash flow management and sector-specific performance closely.
Positive Factors
High profit margins and operational efficiency
Weibo's very high gross margins (~79%) and healthy operating margins reflect a scalable ad-driven business with low incremental costs. Durable margin strength provides operational leverage, supporting reinvestment in product and AI initiatives and cushioning profitability during revenue cycles.
Negative Factors
Recent decline in revenues and ad income
Year-over-year declines in total and advertising revenues signal durable pressures in monetization that could persist beyond near-term cycles. Sustained top-line contraction limits reinvestment, strains growth initiatives, and raises the bar for margin and cash-flow maintenance if advertiser budgets stay constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
High profit margins and operational efficiency
Weibo's very high gross margins (~79%) and healthy operating margins reflect a scalable ad-driven business with low incremental costs. Durable margin strength provides operational leverage, supporting reinvestment in product and AI initiatives and cushioning profitability during revenue cycles.
Read all positive factors
Weibo (WB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.15B
Dividend Yield8.13%
Average Volume (3M)934.18K
Price to Earnings (P/E)5.4
Beta (1Y)0.72
Revenue Growth-1.29%
EPS Growth22.48%
CountryUS
Employees4,982
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.25
Shares Outstanding156,449,480
10 Day Avg. Volume1,360,412
30 Day Avg. Volume934,183
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)0.65
Price to Sales (P/S)1.29
P/FCF Ratio3.92
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit1.17
Enterprise Value/Ebitda3.00
Forecast
1Y Price Target
$8.35Price Target Upside-17.16% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1.62
Revenue Forecast (FY)$1.88B
Weibo 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-A...
How the Company Makes Money
Weibo generates revenue primarily through advertising services, which account for the majority of its earnings. The company offers various advertising formats, including display ads, promoted posts, and brand partnerships, enabling businesses to r...
Weibo Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
While Weibo saw significant engagement growth and AI advancements in advertising, overall revenue and ad income declined due to high base effects and sector-specific challenges. The performance was mixed across industries, with strong growth in e-commerce and automobiles but declines in gaming and smartphones.Positive Updates
User Engagement Growth
In September 2025, Weibo's MAUs reached 578 million and DAUs reached 257 million. The per capita viewership, time spent, and retention of mid- and low-frequency user groups grew double digits quarter-over-quarter.
Negative Updates
Overall Revenue Decline
Weibo's total revenues reached USD 442.3 million, a decrease of 5% year-over-year. Total ad revenues reached USD 375.4 million, a decrease of 6% year-over-year.
Read all updates
Q3-2025 Updates
Positive
Negative
User Engagement Growth
In September 2025, Weibo's MAUs reached 578 million and DAUs reached 257 million. The per capita viewership, time spent, and retention of mid- and low-frequency user groups grew double digits quarter-over-quarter.
Read all positive updates
Company Guidance
During the third quarter of 2025 earnings call, Weibo provided detailed guidance on several key metrics and strategies. The company reported that its monthly active users (MAUs) reached 578 million in September 2025, with average daily active users (DAUs) at 257 million. Total revenues for the quarter were $442.3 million, reflecting a 5% year-over-year decline, while advertising revenues were $375.4 million, down 6% from the previous year. Non-GAAP operating income stood at $132 million, yielding a non-GAAP operating margin of 30%. The call highlighted Weibo's strategic focus on enhancing user engagement through product innovations, such as upgrading the homepage information feed and optimizing recommendation algorithms, particularly for video content. The company's AI-driven initiatives in advertising and search products were also emphasized as crucial for improving user satisfaction and ad performance. Despite challenges, including a high base effect from the previous year's events, Weibo remains optimistic about future growth opportunities, particularly in sectors like e-commerce and automotive, and is leveraging AI to drive its ad strategy forward.Weibo Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
45
Neutral
| 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 | 534.63M | 597.73M | 695.15M | 265.84M | 682.96M | 469.42M |
| 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 | 2.49B | 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 Technical Analysis
Negative
10.08
Price Trends
10.05
Negative
10.18
Negative
10.54
Negative
Market Momentum
-0.38
Positive
27.71
Positive
23.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WB, the sentiment is Negative. The current price of 10.08 is above the 20-day moving average (MA) of 9.44, above the 50-day MA of 10.05, and below the 200-day MA of 10.54, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 27.71 is Positive, neither overbought nor oversold. The STOCH value of 23.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WB.
Weibo Risk Analysis
Weibo disclosed 113 risk factors in its most recent earnings report. Weibo 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 Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $26.67B | 80.88 | 20.89% | ― | 69.71% | ― | |
71 Outperform | $14.14B | 17.48 | 13.77% | 1.02% | 13.86% | 80.97% | |
68 Neutral | $11.97B | 41.90 | 8.74% | ― | 16.79% | 819.94% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $2.15B | 5.42 | 12.13% | 8.13% | -1.29% | 22.48% | |
56 Neutral | $28.97B | 208.29 | 2.48% | ― | -87.55% | 336.73% | |
55 Neutral | $7.58B | -29.98 | -20.72% | ― | 11.75% | 49.19% |
* Communication Services Sector Average
WB
Weibo
8.71
-0.28
-3.10%
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Weibo Corporate Events
Weibo Monitors Sina Appraisal Case and Launches US$200 Million Share Buyback
Dec 31, 2025
On December 31, 2025, Weibo disclosed that its controlling shareholder, Sina Corporation, has received an adverse judgment in a Cayman Islands appraisal proceeding related to Sina’s privatization, which Sina has appealed, with enforcement st...
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.