Weibo (NASDAQ:WB) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Weibo (NASDAQ:WB) from a hold rating to a sell rating in a research report sent to investors on Thursday morning, Zacks.com reports.

According to Zacks, “Weibo Corporation operates as a social media platform for people to create, distribute and discover Chinese-language content. The Company operates in two segments: Advertising and Marketing Services, and Other Services. The company offers self-expression products; social products; discovery products; notifications; third-party online games. Weibo also develops mobile apps, such as Weibo Headlines; Weibo Weather and WeiDisk. It also provides advertising and marketing solutions, including social display ads and promoted marketing products. Weibo Corporation is headquartered in Beijing, China. “

A number of other brokerages have also recently commented on WB. Benchmark reissued a buy rating and issued a $51.00 price target (down from $81.00) on shares of Weibo in a research report on Friday, May 24th. BidaskClub cut Weibo from a sell rating to a strong sell rating in a research report on Wednesday, May 22nd. Jefferies Financial Group assumed coverage on Weibo in a research report on Monday, August 5th. They issued a hold rating and a $43.60 price target on the stock. HSBC cut Weibo from a hold rating to a reduce rating and set a $45.54 price target on the stock. in a research report on Friday, May 24th. Finally, JPMorgan Chase & Co. cut Weibo from an overweight rating to a neutral rating and set a $45.00 price target on the stock. in a research report on Tuesday, May 28th. Four analysts have rated the stock with a sell rating, nine have given a hold rating and four have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $60.46.

WB stock opened at $37.08 on Thursday. Weibo has a fifty-two week low of $34.26 and a fifty-two week high of $83.35. The business’s 50 day moving average price is $40.09 and its two-hundred day moving average price is $54.47. The company has a debt-to-equity ratio of 0.45, a quick ratio of 3.44 and a current ratio of 3.44. The company has a market capitalization of $7.95 billion, a price-to-earnings ratio of 14.71 and a beta of 2.21.

Weibo (NASDAQ:WB) last posted its earnings results on Thursday, May 23rd. The information services provider reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.50 by $0.06. Weibo had a return on equity of 37.16% and a net margin of 35.25%. The firm had revenue of $399.18 million for the quarter, compared to the consensus estimate of $399.65 million. During the same quarter in the prior year, the business earned $0.50 EPS. The business’s revenue for the quarter was up 14.1% on a year-over-year basis. Sell-side analysts forecast that Weibo will post 2.44 earnings per share for the current year.

A number of hedge funds have recently added to or reduced their stakes in the stock. Invesco Ltd. lifted its position in Weibo by 29.7% in the 2nd quarter. Invesco Ltd. now owns 4,591,978 shares of the information services provider’s stock valued at $199,981,000 after acquiring an additional 1,052,658 shares in the last quarter. Platinum Investment Management Ltd. lifted its position in Weibo by 11.9% in the 2nd quarter. Platinum Investment Management Ltd. now owns 3,096,729 shares of the information services provider’s stock valued at $134,863,000 after acquiring an additional 328,248 shares in the last quarter. Wells Fargo & Company MN lifted its position in Weibo by 12.9% in the 2nd quarter. Wells Fargo & Company MN now owns 2,305,977 shares of the information services provider’s stock valued at $100,425,000 after acquiring an additional 262,741 shares in the last quarter. Federated Investors Inc. PA lifted its position in Weibo by 21.3% in the 1st quarter. Federated Investors Inc. PA now owns 2,143,962 shares of the information services provider’s stock valued at $132,904,000 after acquiring an additional 376,126 shares in the last quarter. Finally, Fiera Capital Corp lifted its position in Weibo by 2.7% in the 2nd quarter. Fiera Capital Corp now owns 954,214 shares of the information services provider’s stock valued at $41,556,000 after acquiring an additional 24,794 shares in the last quarter. 24.74% of the stock is currently owned by institutional investors and hedge funds.

About Weibo

Weibo Corporation, through its subsidiaries, operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates in two segments, Advertising and Marketing Services, and Value-Added Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; and discovery products to help users discover content on its platform.

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