Weibo (WB) AI Stock Analysis

• Market Cap: $3.03B
• Dividend Yield: 6.65%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.44
• Revenue Growth: 1.21%
• EPS Growth: 14.72%
• Country: US
• Employees: 4,982
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.54
• Shares Outstanding: 156,449,480
• 10 Day Avg. Volume: 1,610,818
• 30 Day Avg. Volume: 1,475,028
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 4.51
• 1Y Price Target: $12.16
• Price Target Upside: -1.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $14.00 ▲(13.54% Upside)

Weibo's stock is supported by strong technical indicators and a positive earnings call, indicating growth in user engagement and revenue. The valuation is attractive with a low P/E ratio and high dividend yield. However, financial performance is moderated by recent cash flow issues, which require attention. Overall, the stock presents a promising investment opportunity with some risks to monitor.

Positive Factors

User Growth and Engagement

Strong user growth and engagement indicate a robust platform with increasing reach, enhancing Weibo's attractiveness to advertisers and partners.

AI Integration and Product Enhancements

AI-driven improvements in content recommendation and search enhance user experience, potentially boosting engagement and monetization capabilities.

Revenue and Monetization

Consistent revenue growth reflects effective monetization strategies and a stable advertising business, supporting long-term financial health.

Negative Factors

Cash Flow Challenges

Cash flow issues could impact liquidity and limit investment in growth initiatives, posing a risk to financial stability if not addressed.

Sector-Specific Challenges

Sector-specific downturns, particularly in FMCG and luxury goods, may hinder advertising revenue growth, affecting overall financial performance.

Uncertainty in Key Industries

Uncertainty in key industries like cell phones and gaming could limit growth opportunities and affect Weibo's advertising revenue streams.

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 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 demonstrates strong profitability and efficient cost management, with healthy margins and a stable balance sheet. However, recent cash flow issues present potential risks that need monitoring.

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	524.45M	619.03M	714.45M	289.91M	668.74M	458.99M
Net Income	358.33M	300.80M	342.60M	85.56M	428.32M	313.36M
Balance Sheet
Total Assets	6.66B	6.50B	7.28B	7.13B	7.52B	6.34B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.35B	3.23B	3.17B	3.13B	3.50B
Total Debt	1.86B	1.91B	2.71B	2.42B	2.43B	2.43B
Total Liabilities	3.15B	2.93B	3.76B	3.74B	3.83B	3.45B
Stockholders Equity	3.43B	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: Positive
• Last Price: 12.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 12.33 is above the 20-day moving average (MA) of 12.12, above the 50-day MA of 11.15, and above the 200-day MA of 9.53, indicating a bullish trend. The MACD of 0.36 indicates Positive momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 49.57 is Neutral, 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	$32.66B	25.58	9.79%	0.76%	10.66%	84.89%
PINS	78 Outperform	$22.85B	12.01	40.02%	―	17.00%	901.05%
WB	74 Outperform	$3.03B	8.73	10.77%	6.65%	1.21%	14.72%
RDDT	73 Outperform	$44.94B	202.68	9.06%	―	69.97%	―
SNAP	63 Neutral	$13.97B	-25.38	-28.48%	―	13.18%	54.39%
NBIS	60 Neutral	$26.87B	117.18	-0.18%	―	-95.06%	1.92%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Weibo Corporate Events

Weibo Reports Solid Q2 2025 Financial Results with Increased Revenue

On August 14, 2025, Weibo Corporation announced its unaudited financial results for the second quarter ended June 30, 2025, reporting a 2% year-over-year increase in net revenues to $444.8 million. The company saw a solid performance in its advertising business and user engagement, with advertising and marketing revenues rising by 2% to $383.4 million. Despite a 2% decrease in value-added services revenues, the company’s income from operations grew by 8% to $145.6 million, with a net income attributable to shareholders of $125.7 million. Weibo’s monthly active users reached 588 million, indicating strong user growth and engagement.

Weibo Corporation Releases Q2 2025 Financial Results with IFRS Reconciliation

On August 14, 2025, Weibo Corporation released its unaudited financial results for the second quarter and the six months ending June 30, 2025. The interim report, published under the Hong Kong Listing Rules, includes a reconciliation of financial statements prepared under U.S. GAAP and IFRS. PricewaterhouseCoopers conducted a limited assurance engagement on this reconciliation, concluding that the financial information aligns with the standards and calculations are accurate. This report ensures transparency and compliance with international financial reporting standards, potentially impacting stakeholder confidence and the company’s market positioning.