Personal Finance
WB

Why Weibo Shares Popped Today

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

What happened

Shares of Weibo (NASDAQ: WB) 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.

10 stocks we like better than Weibo

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Weibo wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 5, 2018

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Weibo. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

WB

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More