WB-SW (09898) saw its shares fall nearly 3% during the trading session. As of the latest update, the stock was down 2.53%, trading at HK$59.6 with a turnover of HK$9.8965 million.
The decline follows the company's release of its first-quarter 2026 financial results after market close yesterday. The report showed net revenue of approximately $421 million, a year-on-year increase of 6.17%. However, net profit attributable to Weibo shareholders was $34.715 million, a significant decrease of 67.55% compared to the same period last year. Basic net earnings per share were $0.15.
User metrics for March 2026 indicated a monthly active user base of 562 million and an average daily active user count of 254 million.
Analysts at Huatai Securities noted potential headwinds for the company's advertising business in the near term. They pointed to a high comparative base from the previous year's food delivery platform advertising campaigns in the second and third quarters. Additionally, the late confirmation of broadcasting rights for the upcoming FIFA World Cup, coupled with time zone differences, may limit the overall boost to advertising revenue.
Looking at the longer-term strategy, the brokerage highlighted the company's shift in focus towards trending topics and its recommendation feed. In Q1 2026, the proportion of vertical content within Weibo's trending searches increased. The firm is expected to enhance traffic for AI-related topics going forward, with analysts suggesting investors monitor marginal changes in user acquisition spending for AI applications. Improvements in the video business are seen as a positive for user engagement.
Huatai Securities concluded that Weibo's performance may face pressure in the near to medium term.
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