Even though some investors might be tempted to sell Weibo Corporation due to the latest downward trends and the recent drop by -0.75%, WB stocks may not be lost as the company is reporting increased in the number of monthly and daily active users, as well as reporting growth in revenue generated through advertising.
The report from the last quarter of 2018 may have also disappointed Weibo investors, as stocks bottomed at the beginning of 2019 probably as a consequence. However, this Chinese social giant may still be a keeper, reporting 25% increases in revenue growth year to year.
Should You Invest in Weibo Corporation Stocks in 2019?
Weibo touched a low of 50$ per share at the beginning of January, and although the stock rallied in attempt to get a rebound back to the value of 75$ per share, the stock closed at 58$.
Market capitalization of this social media company based in China and founded back in 2009 is 12.8 billion dollars, also reporting increased market share in digital advertising, alongside reporting year to year revenue of 481.9 million dollars for 2018 with 28% year to year increases.
Revenues generated through advertising topped 417 million in the period of a single year, however, the costs of the company are raising as well, jumping from 232.2 million dollars for 2017 to the recently reported 298.8 million dollars in costs for 2018.
The costs accounted for new personnel should, however, pay off in the future as the new employees bring more business to the company, which means that the costs are mainly focused on the company’s growth where short-term losses may be long-term gains.
At the same time, the number of daily active users (DAUs) increased from 28 million active users on daily basis in 2017 to 200 million in 2018, which may consequently bring more value and more profits to the company and shareholders.