Weibo falls after BofA cuts rating on vulnerability to macro, competition risks

seekingalpha01-11

Weibo's (NASDAQ:WB) stock fell about 6% on Thursday after BofA Securities downgraded the shares to Underperform from Buy citing vulnerability to macro and competition risks. The firm also lowered the ...

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The firm also lowered the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4054375-weibo-falls-after-bofa-cuts-rating-on-vulnerability-to-macro-competition-risks\">Source Link</a>\n\n</div>\n","source":"seekingalpha_hot_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Weibo falls after BofA cuts rating on vulnerability to macro, competition risks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWeibo falls after BofA cuts rating on vulnerability to macro, competition risks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-11 22:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4054375-weibo-falls-after-bofa-cuts-rating-on-vulnerability-to-macro-competition-risks><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Weibo's (NASDAQ:WB) stock fell about 6% on Thursday after BofA Securities downgraded the shares to Underperform from Buy citing vulnerability to macro and competition risks. The firm also lowered the ...</p>\n\n<a href=\"https://seekingalpha.com/news/4054375-weibo-falls-after-bofa-cuts-rating-on-vulnerability-to-macro-competition-risks\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4534","symbol_name":"瑞士信贷持仓","start_time":0,"source_url":"https://seekingalpha.com/news/4054375-weibo-falls-after-bofa-cuts-rating-on-vulnerability-to-macro-competition-risks","article_id":"2402471938","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1437527691/image_1437527691.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2402471938","pubTimestamp":1704985006,"sourceInfo":{"source_id":"seekingalpha_hot_news","name":"SeekingAlpha"},"weMediaInfo":null,"summary":"Weibo's (NASDAQ:WB) stock fell about 6% on Thursday after BofA Securities downgraded the shares to Underperform from Buy citing vulnerability to macro and competition risks. 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The firm also lowered the price target on the stock to $10 from $19.5. The analysts think that compared with major ad platforms, the company may be more vulnerable to macro and competition risks. They estimate most of Weibo's ad is from consumption related verticals, especially FMCG, and has brand promotion purpose. The analysts expect brand promotion ad spend to remain soft in 2024 due to macro and advertisers' shift towards performance-based ads. They are concerned about competition from short video and other social channels, affecting traffic and ad revenue. While Weibo has been trying to ramp up video content, it remains as a mainly text and picture platform with limited ecommerce ecosystem, the analysts added. The analysts also see other potential risk factors including a content risk, they watch for impact of influencer (more than 500K followers) real-name display; uncertainties regarding Alibaba's (BABA) shareholding in Weibo, given recent news of Alibaba’s stake sales in other investees, lagging behind peers with deeper pockets and stronger AI capabilities in Gen AI race. The analysts anticipate Weibo's (WB) ad revenue to continue to underperform in 2024E — 5% year-over-year (RMB basis) for Weibo, versus teens percentage growth for social media peers including Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) Kuaishou (OTCPK:KUASF) (OTCPK:KSHTY) and Bilibili (BILI) and high single digit percentage growth for ad peer — Baidu (BIDU), and BofA's 5-10% growth outlook for online ad market. The firm has lowered Weibo's 2024E topline to USD1.83B (+5% year-over-year) from USD1.87B (+7% year-over-year) and 2024E adjusted net profit reduced to $541M (+5% year-over-year) from $565M (+10% year-over-year). The analysts have a bigger cut in 2024E adjusted diluted EPS to $2.05 (-4% year-over-year) from $2.37, as they factor in potential share dilution from the recently issued $330M convertible senior note (refinance purpose). Weibo (WB) has a Hold rating at Seeking Alpha's Quant Rating system, which consistently beats the market. The Seeking Alpha authors' (1 author in this case) average rating is also Hold, however the average Wall Street analysts' rating is more positive with a Buy.  More on Weibo  Weibo Corporation (WB) Q3 2023 Earnings Call Transcript Weibo: A Mixed View After Q3 Results Biggest stock movers today: Snap, ImmunoGen, Snowflake, Salesforce and more Weibo intends to offer $300M convertible senior notes Seeking Alpha’s Quant Rating on Weibo","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2402471938"}