US stocks made a move | Recommended by brokerage, Weibo rebounded by about 2% in pre-market trading, previously hitting a historic low.
On September 11th, Weibo (WB.US) pre-market trading rose 1.96% to $7.28, the stock previously hit a new low of $7.03. The latest report from China Securities Co., Ltd. indicates a bullish trend in Weibo's overall advertising after inventory clearance. In addition, Weibo plans to expand the application of AI in vertical content areas, which is expected to bring new growth opportunities for the company. According to analysts who follow the company, it is projected that the earnings per share will grow by 4.5% annually in the next three years. Meanwhile, it is expected that the rest of the market will grow by 10% annually, which is significantly more attractive.
Benign Growth For Weibo Corporation (NASDAQ:WB) Underpins Its Share Price
Major bank rating | BOC International: Lower Weibo's target price to HK$64, maintain 'hold' rating, core strategy unchanged.
Guanglung Hui, August 28 | Bank of China International published a research report stating that Weibo recorded a revenue of 0.438 billion US dollars in the second quarter of this year, a 1% decrease compared to the previous year, which is in line with market expectations, and a 1% increase in the same exchange rate. During the period, the core advertising business revenue decreased by 3%, excluding the impact of exchange rates, the decline was 1%. The bank pointed out that the proportion of daily and monthly active users of Weibo improved to 43.9% during the period, and the adjusted net profit margin reached 28.8%, reflecting the company's good performance in high-quality users, content, and operational strategies. Its core strategy remains unchanged, and it is expected to further amplify its social media platform advantages. However, due to the weak macro environment.
Nomura Adjusts Price Target on Weibo to $8.80 From $10, Maintains Neutral Rating
Major bank rating | Goldman Sachs: Lowers Weibo's target price to HK$73, taking a more cautious outlook on advertising revenue.
On August 26, Goldman Sachs released a research report stating that Weibo's second-quarter earnings roughly met the bank's expectations but exceeded market expectations. After attending the company's earnings conference, given the weak macro environment and the shrinking advertising budgets of consumer brands, the outlook for advertising revenue for the second half of this year and beyond is more cautious. Management anticipates that cosmetic advertising revenue will remain stable year-on-year in the fourth quarter of this year, which is somewhat reassuring for the bank. The bank points out that excluding forex impacts, compared to the first and second quarters of this year where advertising revenue remained flat year-on-year and dropped by 1% respectively, even with a slight increase in advertising revenue due to the Paris Olympics, the company is expected to see relatively stable advertising revenue in the third and fourth quarters.
Daiwa lowered the target price of Weibo (WB.US) to $7.5, and the second quarter performance met expectations.
Morgan Stanley's report states that Weibo (WB.US) met expectations in the second quarter, but expects advertising revenue in the second half of the year to decline by 4 to 5% when calculated in renminbi. The skincare and cosmetic vertical markets continue to be drag factors. Boosted by the Olympics, business performance in the third quarter is expected to be slightly better than the fourth quarter. The bank expects non-GAAP operating profit to decline by 9% in the second half of the year, citing operating expenses, Olympics-related sales and management, and investments. Morgan Stanley lowered Weibo's revenue forecast for 2024 to 2026 by 1 to 5%, reflecting weakened consumer sentiment and significant competitive threats from short video platforms, among other factors. Sales and marketing expenses.