1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
We are raising our near-term and long-term revenue forecasts for Weibo following a strong fourth-quarter earnings report, and we are raising our fair value estimate to USD 27.0 per share from USD 26.3. The shares are expensive in our view due to rising competition in the advertising segment.
Weibo is the largest social media platform in China. As of 2016, Weibo had 313 million monthly active users and 139 million daily active users, many of whom are drawn there by the millions of key opinion leaders in entertainment, sports, and business circles. Sina is the major shareholder, holding 49.9% of shares and with 75% voting power; Alibaba holds 31.5% of shares and 14.8% voting power.
