Weibo: Look Beyond The Third Quarter

Nov. 18, 2022 5:06 AM ETWeibo Corporation (WB)1 Comment

Summary

  • It was a mixed quarter for Weibo in Q3 2022, as the company's better-than-expected operating margins were negated by a significant revenue contraction.
  • Investors are looking beyond Q3 and they have their eyes on WB's Q4 performance; I expect Weibo to achieve a higher operating margin and a narrower revenue decline for Q4.
  • I have a Buy rating for WB; there is the potential for Weibo's P/E multiple to expand as its financial performance improves over time.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

Chinese Social Media with iphone X

4X-image

Elevator Pitch

I rate Weibo Corporation's (NASDAQ:WB) [9898:HK] stock as a Buy.

I analyzed WB's financial performance for the second quarter of this year with my prior September 2, 2022 write-up. In the current article, my focus is on

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Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities  with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).


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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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