Weibo: At Half Of Book Value, This Stock Could Easily Double
Summary
- Weibo Corporation's market cap has dropped 95% since 2018, yet its book value has tripled, resulting in the stock trading at around half of book value.
- This low P/B ratio does not reflect low return on equity or poor asset quality, suggesting the stock is deeply undervalued.
- At 6x earnings and with an 11% dividend yield, investors are likely to generate strong returns unless Weibo's sales take a drastic decline.
- Despite regulatory risks, the valuation gap between US and Chinese tech seems unjustified, particularly as Western governance systems are becoming increasing interventionist.
Robert Way
Weibo Corporation (NASDAQ:WB) is one of the cheapest stocks I have seen, with its market cap having fallen 95% from its peak of above USD30bn in 2018 to around USD1.8bn today. Over this period the company's book value has
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