Weibo (WB) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: 7.98%
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.57
• Revenue Growth: -1.29%
• EPS Growth: 22.48%
• Country: US
• Employees: 4,982
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.42
• Shares Outstanding: 156,449,480
• 10 Day Avg. Volume: 898,108
• 30 Day Avg. Volume: 1,002,315
• PEG Ratio: -0.61
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 3.92
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 6.06
• 1Y Price Target: $9.85
• Price Target Upside: -4.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.75
• Revenue Forecast (FY): $1.73B

• Rating: 60 Neutral
• Price Target: $10.50 ▲(2.14% Upside)

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

User Engagement Growth

Strong user engagement growth indicates a robust platform with increasing user retention, which can drive long-term advertising revenue and platform relevance.

AI Application in Advertising

The adoption of AI in advertising enhances targeting precision and user experience, potentially improving ad performance and revenue sustainability.

Strength in E-commerce and Automobile Sectors

Growth in e-commerce and automobile sectors suggests diversification and resilience in revenue streams, supporting long-term financial stability.

Negative Factors

Overall Revenue Decline

A decline in overall revenue reflects challenges in maintaining growth momentum, potentially impacting long-term profitability and market position.

Pressure on Operating Margin

Decreased operating margins indicate rising costs or pricing pressures, which could erode profitability if not managed effectively over time.

Cash Flow Challenges

Cash flow challenges may strain liquidity and limit investment in growth initiatives, affecting long-term operational and financial health.

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-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, 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 is a subsidiary of Sina Corporation.

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 reach their target audiences effectively. Additionally, Weibo monetizes its platform through value-added services, such as VIP memberships, which provide users with enhanced features and functionalities. The company also collaborates with key partners, including brands and media agencies, to create tailored marketing solutions, and it leverages data analytics to optimize ad placements and improve campaign effectiveness. Furthermore, Weibo benefits from its extensive user engagement and content creation, driving ad demand and enhancing its overall revenue potential.

Weibo Financial Statement Overview

Summary

Weibo demonstrates strong profitability and efficient cost management, as reflected in healthy margins. The balance sheet is stable, with adequate equity and manageable leverage. However, recent cash flow issues present potential risks that need monitoring. Overall, Weibo maintains a solid financial foundation, but attention to cash flow management is crucial moving forward.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 10.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10.28 is above the 20-day moving average (MA) of 10.25, below the 50-day MA of 11.23, and above the 200-day MA of 10.02, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WB.

Weibo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDDT	75 Outperform	$41.02B	119.23	15.22%	―	69.71%	―
PINS	73 Outperform	$17.65B	9.05	51.49%	―	16.79%	819.94%
TME	71 Outperform	$25.79B	18.89	14.47%	0.98%	13.86%	80.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WB	60 Neutral	$2.43B	5.74	12.46%	7.98%	-1.29%	22.48%
SNAP	60 Neutral	$13.20B	―	-22.38%	―	11.75%	49.19%
NBIS	46 Neutral	$23.63B	103.49	3.45%	―	-87.55%	336.73%

Weibo Corporate Events

Weibo Corp Reports Mixed Q3 2025 Financial Results

Weibo Corporation is a prominent social media platform in China, offering a space for users to create, share, and discover content online. It is known for its unique asymmetric user relationships and serves as a powerful tool for social interaction and content distribution, generating most of its revenue from advertising and marketing services.

Weibo Corp’s Earnings Call: Growth Amid Challenges

Weibo Corp’s recent earnings call painted a picture of cautious optimism, highlighting significant growth in user engagement, revenue, and AI-driven product enhancements, particularly in intelligent search. Despite facing challenges in sectors such as FMCG, gaming, and luxury goods, the overall sentiment was positive, suggesting strategic advancements and a forward-looking outlook.