Weibo's Profitability Could Face Greater Near-Term Pressure

Dow Jones16:24

0824 GMT - Weibo's profitability could face greater near-term pressure, says Fitch Ratings in a note, citing intense competition, a challenging macroeconomic environment and increased investment to maintain the Chinese internet platform's competitiveness. Competition from alternative social media platforms such as ByteDance's Douyin and Xiaohongshu, known internationally as Rednote, could weigh on Weibo's advertising revenue in the near term, says Fitch. Higher investment in video-content marketing and artificial-intelligence-enabled product operations could constrain Weibo's margins in 2H and 2027, Fitch adds. Fitch says visibility on the timing and pace of a material recovery remains limited. It revises its outlook on Weibo's long-term foreign- and local-currency issuer default ratings to negative from stable. Shares closed 3.0% lower at 50.15 Hong Kong dollars.

At the request of the copyright holder, you need to log in to view this content

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