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 ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2402471938?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1437527691/image_1437527691.jpg","is_english":true,"pubTime":"2024-01-11 22:56","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2402471938","market":"us","top_or_hot":-1,"title":"Weibo falls after BofA cuts rating on vulnerability to macro, competition risks","media":"seekingalpha","content":"<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","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":"LU1267930227.SGD","symbol_name":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","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. The firm also lowered the ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","LU1115378108.SGD":"Eastspring Investments - Global Emerging Markets Dynamic AS SGD","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","BK4505":"高瓴资本持仓","BILI":"哔哩哔哩","BK4510":"在线教育","BK4581":"高盛持仓","TCEHY":"腾讯控股ADR","BK4085":"互动家庭娱乐","BK4504":"桥水持仓","BIDU":"百度","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4548":"巴美列捷福持仓","LU0348814723.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"A\" (USD) INC  NC","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4514":"搜索引擎","LU0287142896.SGD":"Fidelity China Focus A-SGD","TCTZF":"Tencent Holding Ltd.","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4565":"NFT概念","BK4513":"直播概念","LU1688375341.USD":"贝莱德中国灵活股票基金","09988":"阿里巴巴-SW","BK4554":"元宇宙及AR概念","BABA":"阿里巴巴","BK4531":"中概回港概念","KSHTY":"KUAISHOU TECHNOLOGY","LU0173614495.USD":"富达中国焦点A","BK4534":"瑞士信贷持仓","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0359201612.USD":"贝莱德中国基金A2","BK4533":"AQR资本管理(全球第二大对冲基金)","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","BK4558":"双十一","BK4535":"淡马锡持仓","BK4220":"综合零售","BK4524":"宅经济概念","KUASF":"KUAISHOU TECHNOLOGY","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","BK4538":"云计算","BK4527":"明星科技股","WB":"微博","BK4552":"Archegos爆仓风波概念","BK4526":"热门中概股","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU0640798160.USD":"EASTSPRING INVESTMENTS GLOBAL EMERGING MARKET DYNAMIC \"A\" (USD) ACC","BK4122":"互联网与直销零售"},"translate_title":"美国银行下调宏观竞争风险脆弱性评级后，微博下跌","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BABA":1,"WB":1,"TCTZF":1,"TCEHY":1,"KUASF":1,"KSHTY":1,"BIDU":1,"BILI":1,"09988":0.6},"content_text":"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 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":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","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":"4.24.0","shortVersion":"4.24.0","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"}