Weibo Corporation Rising Large Players Volume

Weibo Corporation had eye-popping earnings and revenue beats. The company’s quarterly revenue was up an incredible 80.9% year-over-year.

Weibo Corporation has a beautiful positive divergence between large players volume and price. Weibo Corporation reported EPS of $0.51 versus the $0.45 estimate. Revenue also crushed estimates coming in at $320 million versus the $297.20 million estimate. The company’s quarterly revenue was up an eye-popping 80.9% year-over-year.

Gaofei Wang, CEO of Weibo, said, “We have made a number of breakthroughs in the areas of expanding ad customer base, improving ad system efficiency as well as developing innovative marketing solutions. These achievements in turn allowed us to drive robust topline and bottom line growth in the third quarter across all business sectors. More importantly, I’m happy to see that we are increasingly creating a virtuous cycle of growth on Weibo by translating user base expansion and engagement growth into stronger monetization capabilities.”

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. Weibo Corporation is headquartered in Beijing, China. You can read more about the company on their website.

The positive divergence on the large players volume is a thing of beauty. The Twiggs Money Flow is rounding up and ready to break positive.

Looking at the yearly performance, WB stock did better than 96% of all other stocks. We also observe that the gains produced by WB over the past year are nicely spread over this period.

WB stock presents a good setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at $106.11. Right above this resistance zone may be a good entry point.

Weibo Corporation Review
3.5

Summary

Profitability

WB has a Return On Assets of 14.56%. This is among the best returns in the industry. The industry average is -1.09%. WB outperforms 93% of its industry peers. WB's Return On Equity of 21.44% is among the best of the industry. WB does better than the industry average Return On Equity of 13.38%. WB's Profit Margin of 23.22% is among the best returns of the industry. WB outperforms 93% of its industry peers. The industry average Profit Margin is -2.42%. WB has a good Piotroski-F score of 7. This indicates a good health and good profitability for WB.

Valuation

The low PEG Ratio, which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company. The Price/Earnings Ratio is 115.90, which means the current valuation is very expensive for WB. Compared to an average industry Price/Earning Ratio of 38.92, WB is valued more expensive than its industry peers. On top of this 86% of the companies listed in the same industry are cheaper than WB! With a Forward Price/Earnings Ratio of 36.40, WB is valued very expensively. With a price book ratio of 24.28, WB is valued rather expensively. When comparing the price book ratio of WB to the average industry price book ratio of 4.55, WB is valued more expensive than its industry peers. 94% of the companies listed in the same industry are valued cheaper. When comparing the Enterprise Value to EBITDA ratio of WB to the average industry ratio of 21.59, WB is valued more expensive than its industry peers. 90% of the companies listed in the same industry are valued cheaper.

Growth

WB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 192.58%, which is quite impressive. Based on estimates for the next 2 years, WB will show a very strong growth in Earnings Per Share. The EPS will grow by 140.84% on average per year. Looking at the last year, WB shows a very strong growth in revenue. Revenue has grown by 55.98%. The EPS growth is decreasing: in the next 2 years the growth will be less than in the last years. Revenue for WB have been decreasing by -56.73% on average. This is bad.

Health

A Current Ratio of 2.04 indicates that WB has no problem at all paying its short term obligations. When comparing the Current Ratio to an average industry Current Ratio of 1.71, WB is better placed than the average industry peer to meet its short term obligations. A Quick Ratio of 2.04 indicates that WB has no problem at all paying its short term obligations. WB is better placed than average in its industry to meet its short term obligations. Its Current Ratio is much better than the industry average of 1.68. An Altman-Z score of 31.23 indicates that WB is not in any danger for bankruptcy at the moment. WB has one of the better Altman-Z scores in its industry. It is much better than the industry average of 3.87. WB has a better score than 97% of its industry peers. The Piotroski-F score of WB is 7. This is a strong score and indicates good health and profitability for WB. The Debt to Equity ratio of WB is in line with the industry averages.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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