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WB

Weibo NasdaqGS:WB Stock Report

Last Price

US$23.26

Market Cap

US$5.5b

7D

7.8%

1Y

-55.5%

Updated

27 Jun, 2022

Data

Company Financials +
WB fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends0/6

WB Stock Overview

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.

Weibo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Weibo
Historical stock prices
Current Share PriceUS$23.26
52 Week HighUS$64.70
52 Week LowUS$18.62
Beta0.88
1 Month Change5.73%
3 Month Change-8.25%
1 Year Change-55.52%
3 Year Change-47.06%
5 Year Change-65.96%
Change since IPO14.92%

Recent News & Updates

Jun 03

Weibo: Fundamentals Point To Strong Upside

Weibo is a leading social-media company in China operating one of the country’s most successful and popular communication platform. With a >500 million user base and a strong brand, Weibo appears well-positioned to capture a large share of China’s internet/communication market. Looking at Weibo’s valuation, the company’s financials appear highly underappreciated - as Weibo is profitable and the company's balance sheet healthy. I assign a BUY rating to Weibo stock and set a price target of $43.56/share.

Apr 07

Weibo Plays With The Big Boys In Numbers, But Investors Still Worry

Despite impressive financial results last year, China’s Twitter equivalent faces the challenge of better monetizing users in its highly regulated home market. Weibo’s revenue rose above pre-pandemic levels last year, but its profitability lagged due to heavy spending. The company trails Meta in its ability to monetize users, and is very much in the shadow of local rival WeChat in terms of total user numbers.

Shareholder Returns

WBUS Interactive Media and ServicesUS Market
7D7.8%6.8%6.6%
1Y-55.5%-44.8%-18.4%

Return vs Industry: WB underperformed the US Interactive Media and Services industry which returned -44.8% over the past year.

Return vs Market: WB underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is WB's price volatile compared to industry and market?
WB volatility
WB Average Weekly Movement7.3%
Interactive Media and Services Industry Average Movement11.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: WB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WB's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20096,147Gaofei Wanghttps://weibo.com

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.

Weibo Fundamentals Summary

How do Weibo's earnings and revenue compare to its market cap?
WB fundamental statistics
Market CapUS$5.50b
Earnings (TTM)US$310.98m
Revenue (TTM)US$2.28b

17.7x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WB income statement (TTM)
RevenueUS$2.28b
Cost of RevenueUS$428.87m
Gross ProfitUS$1.85b
Other ExpensesUS$1.54b
EarningsUS$310.98m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.31
Gross Margin81.21%
Net Profit Margin13.62%
Debt/Equity Ratio66.6%

How did WB perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is WB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WB?

Other financial metrics that can be useful for relative valuation.

WB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA6.3x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

How does WB's PE Ratio compare to its peers?

WB PE Ratio vs Peers
The above table shows the PE ratio for WB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average1267.3x
BMBL Bumble
4835.4x48.8%US$6.5b
IAC IAC/InterActiveCorp
207.8x72.5%US$7.5b
ATHM Autohome
16.5x7.5%US$4.4b
ZD Ziff Davis
9.4x-2.8%US$3.6b
WB Weibo
18.1x22.7%US$5.6b

Price-To-Earnings vs Peers: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (1301.2x).


Price to Earnings Ratio vs Industry

How does WB's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Earnings vs Industry: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the US Interactive Media and Services industry average (45.5x)


Price to Earnings Ratio vs Fair Ratio

What is WB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.7x
Fair PE Ratio27.1x

Price-To-Earnings vs Fair Ratio: WB is good value based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).


Share Price vs Fair Value

What is the Fair Price of WB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WB ($23.82) is trading below our estimate of fair value ($30.9)

Significantly Below Fair Value: WB is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: WB is good value based on its PEG Ratio (0.8x)


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Future Growth

How is Weibo forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WB's forecast earnings growth (22.7% per year) is above the savings rate (1.9%).

Earnings vs Market: WB's earnings (22.7% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: WB's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WB's revenue (7.9% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: WB's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WB's Return on Equity is forecast to be low in 3 years time (12.9%).


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Past Performance

How has Weibo performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WB has a large one-off loss of $296.1M impacting its March 31 2022 financial results.

Growing Profit Margin: WB's current net profit margins (13.6%) are lower than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: WB's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: WB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WB had negative earnings growth (-0.03%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-37.6%).


Return on Equity

High ROE: WB's Return on Equity (7.9%) is considered low.


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Financial Health

How is Weibo's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WB's short term assets ($4.9B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: WB's short term assets ($4.9B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: WB has more cash than its total debt.

Reducing Debt: WB's debt to equity ratio has increased from 0.08% to 66.6% over the past 5 years.

Debt Coverage: WB's debt is well covered by operating cash flow (33.4%).

Interest Coverage: WB earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Weibo current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate WB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WB's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WB has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Gaofei Wang (42 yo)

8.33yrs

Tenure

Mr. Gaofei Wang is Independent Director at Beijing Xiaoju Science & Technology Co, Ltd. since August 2020. Mr. Wang is Director at Didi Global Inc since June 29, 2021.He has been the Chief Executive Offic...


Leadership Team

Experienced Management: WB's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: WB's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Weibo Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Weibo Corporation
  • Ticker: WB
  • Exchange: NasdaqGS
  • Founded: 2009
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$5.502b
  • Shares outstanding: 236.56m
  • Website: https://weibo.com

Number of Employees


Location

  • Weibo Corporation
  • QIHAO Plaza
  • 8th Floor
  • Beijing
  • 100027
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.