Bullish option flow was detected in WB stock on December 29, 2020, after analyst activity in the stock.
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Credit Suisse analyst Alex Xie raised the firm’s price target on Weibo to $40 from $36.40 and keeps a Neutral rating on the shares following the company’s Q3 results. The analyst believes Weibo’s traffic was weak in the second half of 2020 due to competition from short video platforms as well as weakness of entertainment topics. Though the stock’s valuation is “undemanding,” the visibility for sustainable growth remains low before further improvements of the product, Xie tells investors in a research note.
CLSA analyst Elinor Leung raised the firm’s price target on Weibo to $47.50 from $42.50 and keeps a Buy rating on the shares following the company’s Q3 results. Weibo’s revenue growth should continue to improve in 2021 as it replicates success in online games and education in verticals such as e-commerce, Leung tells investors in a research note.
On December 28, 2020, China Renaissance analyst Ella Ji lowered the firm’s price target on Weibo to $38 from $40 and keeps a Hold rating on the shares. The analyst notes that the company’s Q4 guidance implies smaller than expected recovery among small to medium-sized enterprises. Ji adds that she sees few catalysts for Weibo as “efforts in video contents and Oasis have not yet contributed much to user or monetization upside.”
On December 28, 2020, Weibo reported Q3 EPS of 66c versus the consensus estimate of 60c. The company reported Q3 revenue of $465.74M versus the consensus estimate of $449.26M.
Monthly active users, or MAUs, were 511M in September, a net addition of approximately 14M users on year-over-year basis. Mobile MAUs represented approximately 94% of MAUs. Average daily active users, or DAUs, were 224M in September, a net addition of approximately 8M users on year-over-year basis. “We are pleased with Weibo’s recovery trend, despite challenges still persisted,” said Gaofei Wang, CEO of Weibo. “Weibo’s KA business delivered broad-based recovery, with a record high number of brand customers marketing with us. We are glad to see brands increasingly recognize Weibo’s unique value proposition in reaching young audience, leveraging KOL’s influence and serving brand plus performance needs. For performance ad business, we continued to drive value for customers, with team’s solid execution on advertising system upgrade, ad product optimization and ROI improvement,” said Wang.