Weibo (NASDAQ:WB) Shares Gap Down Following Weak Earnings

Weibo Corporation (NASDAQ:WB) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.67, but opened at $9.10. Weibo shares last traded at $8.9470, with a volume of 746,989 shares traded.

The information services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.07). Weibo had a net margin of 26.58% and a return on equity of 11.79%. The business had revenue of $473.26 million for the quarter, compared to analysts’ expectations of $444.28 million. During the same period last year, the business earned $0.40 earnings per share. The company’s quarterly revenue was up 3.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “hold (c)” rating on shares of Weibo in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $14.00.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. WealthCollab LLC grew its position in shares of Weibo by 50.1% during the 4th quarter. WealthCollab LLC now owns 5,123 shares of the information services provider’s stock valued at $52,000 after acquiring an additional 1,709 shares during the period. Daiwa Securities Group Inc. purchased a new stake in shares of Weibo in the 2nd quarter worth $61,000. FourThought Financial Partners LLC bought a new position in Weibo in the 4th quarter worth $110,000. AQR Capital Management LLC purchased a new position in Weibo during the first quarter valued at $117,000. Finally, Verition Fund Management LLC purchased a new position in Weibo during the fourth quarter valued at $138,000. 68.77% of the stock is currently owned by institutional investors.

Weibo Stock Down 7.7%

The company has a fifty day simple moving average of $10.28 and a 200-day simple moving average of $10.78. The company has a quick ratio of 3.35, a current ratio of 3.35 and a debt-to-equity ratio of 0.48. The firm has a market cap of $2.18 billion, a P/E ratio of 5.08, a price-to-earnings-growth ratio of 5.19 and a beta of 0.13.

Weibo Company Profile

Weibo Corporation operates one of China’s leading social media and microblogging platforms under the brand name Weibo. Launched in August 2009 by Sina Corporation, Weibo enables users to create, share and engage with short-form posts in real time. The platform supports text, images, videos and live streams, and offers features such as trending topics, hashtag campaigns and public discussion forums to facilitate user interaction and content discovery.

Weibo’s product suite extends beyond basic social networking to include digital content services such as live streaming, online games, value-added messaging and e-commerce integrations.