Please ensure Javascript is enabled for purposes of website accessibility

Why Weibo Shares Popped Today

By Evan Niu, CFA - Feb 13, 2018 at 1:09PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Chinese microblogging service posted a strong fourth-quarter performance.

What happened

Shares of Weibo (WB 2.54%) have popped today, up by 7% as of 12:30 p.m. EST, after the Chinese microblogging service reported fourth-quarter earnings. Weibo beat expectations on both the top and bottom lines.

So what

Revenue in the fourth quarter came in at $377.4 million, up 77% year over year. That easily topped Weibo's own guidance, which had called for $355 million to $365 million in sales, as well as the consensus estimate of $365 million. Non-GAAP net income was $146 million, or $0.64 per share, compared to the $0.58 per share in adjusted profit that the Street was expecting.

Chinese girl sitting at a table with a teacup in front of her, smiling at a smartphone

Image source: Getty Images.

Monthly active users (MAUs) hit 392 million at the end of 2017, with 93% of users accessing Weibo on a mobile device. Average daily active users (DAUs) were 172 million.

Now what

Weibo also hit an important milestone, with full-year 2017 revenue exceeding $1 billion for the first time. "Weibo's powerful network effect combined with our continued user growth and user engagements as well as breadth of ad offerings have solidified Weibo as an essential element of mobile marketing in China further strengthens Weibo's leading position in the social media industry at large," CEO Gaofei Wang added in a statement.

In terms of guidance, Weibo expects revenue in the first quarter to be $335 million to $345 million, assuming an average exchange rate of 6.5 yuan to $1.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Weibo Corporation Stock Quote
Weibo Corporation
WB
$23.85 (2.54%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.