WB - Weibo Corporation
| Previous Close | 71.15 |
| Open | 70.64 |
| Bid | 71.98 x 800 |
| Ask | 72.03 x 1300 |
| Day's Range | 70.42 - 72.43 |
| 52 Week Range | 51.15 - 128.17 |
| Volume | 319,523 |
| Avg. Volume | 2,306,945 |
| Market Cap | 16.059B |
| Beta (3Y Monthly) | 1.38 |
| PE Ratio (TTM) | 28.62 |
| EPS (TTM) | 2.52 |
| Earnings Date | May 7, 2019 - May 13, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 71.86 |
Reuters•1 hour agoTesla investigates video of parked Model S exploding in Shanghai
U.S. electric vehicle (EV) maker Tesla Inc said it has sent a team to investigate a video on Chinese social media which showed a parked Tesla Model S car exploding, the latest in a string of fire incidents involving its cars. The video, time stamped Sunday evening and widely shared on China's Twitter-like Weibo, shows the parked EV emit smoke and burst into flames seconds later. Shares of Tesla were down less than 2 percent at $268.5 in trading before the bell.
- Motley Fool•4 days ago
Chinese Regulators Crack Down on SINA Again
SINA suspends its news and blog platforms for a month in response to complaints about fake news and pornography.
- InvestorPlace•4 days ago
Alibaba Stock Has Several Catalysts to Drive Its Growth Story Further
Alibaba (NYSE:BABA) stock has rewarded shareholders handsomely so far in 2019. Alibaba was founded in Apr 1999 and had its IPO in Sept 2014 -- at an initial price of $92.7. On Apr. 15, the stock price closed at $183.07. In the past two decades, BABA has become a highly regarded global company, and Alibaba stock offers U.S. investors the chance to invest in the growing Chinese consumer and e-commerce markets. As its second decade ends, the group is increasingly focusing on becoming a social hub.Source: Shutterstock Although there might be volatility in BABA shares in the coming weeks as the global e-commerce platform gets ready to report earnings in early May, long-term investors may regard any upcoming dip in the stock price as an opportunity to buy into the shares. Here is why: Alibaba Stock Has Robust FundamentalsOnline shopping represents about 35% of China's total $5.5 trillion retail market -- and BABA has a 53.3% share. Alibaba's Tmall and Taobao are China's largest online business-to-consumer and consumer-to-consumer marketplaces respectively. One highlight from the company's past quarter is that its mobile monthly active users (MAUs) on the e-commerce platforms have now reached 699 million.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy for Spring Season Growth For example, with the successful Taobao app, users share product reviews, watch webisodes, or live-stream various tutorial. As the time spent on the app increases, so does the money spent on the e-commerce marketplace.As Alibaba gets ready to release its quarterly results in early May, investors who are seeking capital appreciation should keep in mind the company's dominant position in the Chinese e-commerce space. In its earnings report, investors should pay attention to four areas of revenue: * Core commerce (its largest segment which showed 40% year-over-year, YOY, growth); * Cloud computing (which showed 84% YOY growth); * Digital media and entertainment (which showed 20% YOY growth); and * Innovation initiatives (which showed 73% YOY growth).The company's latest quarterly earnings on Jan 30 showed that BABA's gross profit margin is over 45%. Many analysts expect its revenue to continue growing at double-digit-percentage rates, at an average of 20% annually, through both organic growth and acquisitions.It is also important to note that much of its recent growth has been coming from less populated areas of China. At present, around half of China's 1.4 billion citizens reside in rural areas and reaching out to these consumers has become a top priority for Alibaba.The fact that the company is not highly leveraged also contributes to my upbeat view of Alibaba's management and balance sheet. Its 'current ratio', which measures BABA's ability to pay its short-term debt, stands at a healthy 1.25.Although the Chinese economy may slow further in 2019 or even 2020, its GDP is still expanding at an average annual rate of 6% minimum. In other words, China's growing middle class will continue to drive increases in the country's consumer spending and in China's e-commerce market. And when average Chinese citizens have more money in their pockets, more of it can be spent on online shopping sites like Alibaba. Alibaba Is Diversifying in ChinaBABA's core business of online retail contributes to 88% of revenue. However, it's been branching out into other business ventures. This expansion is made possibly partly due to its steady free cash flow (FCF), which measures a company's ability to produce cash. Investors care a lot about FCF as it can be used in a discretionary manner, for example, to invest in growth opportunities and to strengthen Alibaba's balance sheet further.The e-commerce giant now has multiple equity stakes in growth companies in a plethora of industries, such as Ant Financial, the Chinese payments giant; Ele.me, the local delivery company; and Alibaba Cloud, its cloud computing arm. The rapidly growing cloud business, which has brought in about 6% of total revenues in Q4 2018, has long-term growth potential and may help improve the company's margins further.Like Amazon (NASDAQ:AMZN), Alibaba is also paying considerable attention to developments in cloud computing and artificial intelligence (AI), two areas that will contribute to its bottom line and possibly boost BABA stock in coming years. The company announced that it is building its own AI chip to be used in various industries, such as self-driving cars.In its efforts to become a hybrid e-commerce platform that offers social shopping experiences to customers, especially to the tech-savvy youth, Alibaba has been increasing its exposure to social media platforms. For example, it owns 31% of Weibo (NASDAQ:WB), the Chinese microblogging company.Alibaba's Taobao marketplace has recently taken an 8% stake in Chinese anime streaming and entertainment company Bilibili (NASDAQ:BILI) whose users have an average age of 21. The company, which has about 92 million monthly active users, "covers genres and media formats, including videos, live broadcasting, and mobile games." Through this acquisition, Alibaba opens the door to reaching the Gen Z market in China better.BABA's Youku is now the third biggest video streamer in China, behind Tencent Holdings (OTCMKTS:TCEHY) and Baidu (NASDAQ:BIDU). And Alibaba is not shy to invest in the platform to create new content and bring in new subscribers so that it can increase its 22% share in the Chinese video streaming market.Finally, as China increasingly moves into a cashless society, the group's mobile platform, Alipay, is likely to grow exponentially. The digital wallet has already hit 1 billion users in more than 110 countries worldwide. In other words, investors are hopeful that these new ventures will become significant revenue contributors soon. BABA's International Growth Looks PromisingIn addition to its ever-growing presence in China, BABA has investments in start-ups in South Asia and Southeast Asia, too. Southeast Asia is en route to becoming the world's fourth largest economic region by GDP and analysts expect its e-commerce sector to expand tremendously within the next decade.Among the start-ups in those regions in which BABA has stakes are Paytm, an Indian digital-payments provider, and Lazada, a Singapore-based e-commerce company that is growing in overseas markets.The "Amazon of the East" has also set its eyes on moving west through partnerships with European companies, including Vodafone Group (NASDAQ:VOD) in Germany and El Corte Ingles in Spain. Many European companies are still discovering new ways to enter the Chinese market, and BABA may enable them to connect with Chinese customers faster. BABA's mobile payment network, Alipay, is also looking to expand in Europe.Such international growth will not only help increase the company's bottom line, but it will also enable BABA to diversify away from China, lowering the macro risk facing BABA stock. Is It Time to Invest in BABA Stock?The answer depends on your investment style and horizon, i.e., whether you are a short-term trader or a long-term-growth investor. BABA stock is a compelling long-term investment. I also believe that most of the adverse effects of the U.S.-China trade war have already been priced into Alibaba stock. If the two sides reach a deal that's seen in a positive light this year, BABA stock is likely to rally.Yet, the markets are likely to continue to be choppy in April and May, especially since many other tech heavyweights are expected to release their quarterly reports. The volatility of Alibaba stock is high, giving it a broad trading range, so short-term traders should proceed with caution in the coming weeks.As a result of the recent impressive run-up in the stock price, short-term technical indicators have become somewhat over-extended. Investors who pay attention to short-term oscillators should note that BABA's professional message has also become "overbought." So, in the next few weeks, there might be some profit taking in Alibaba stock. The Bottom Line on Alibaba StockAlibaba's growth in e-commerce, cloud computing, and other investments throughout China and globally make it a disruptor and a sound and long-term investment. 2019 has given Wall Street a glimpse of how great BABA's comeback could be as, year-to-date, the stock is up 33%.Therefore long-term investors could view any decline in the BABA stock price as an opportunity to buy the stock. By the end of 2020, I expect the stock to reach $230. * 10 S&P 500 Stocks to Weather the Earnings Storm However, traders with a short-term horizon should remember that there might be some profit-taking in the stock around the earnings report.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Alibaba Stock Has Several Catalysts to Drive Its Growth Story Further appeared first on InvestorPlace.
Reuters•5 days agoChief executive of China's JD.com back in spotlight over civil suit accusation of rape
The personal life of JD.com chief Richard Liu returned to the spotlight of China's social media on Wednesday, drawing 360 million views to briefly become the top trending item on the Twitter-like Weibo, after a civil lawsuit accused him of rape. Liu, who was briefly arrested after a University of Minnesota student accused him of rape last August, maintained his innocence throughout the investigation, which ended in December, with prosecutors declining to press charges. The civil case brought by the student comes as the e-commerce giant faces a backlash over layoffs and its work culture after Liu railed against "slackers", with his social media backing seeming to wane, in contrast to its support after his initial arrest and release.
- Reuters•5 days ago
China's Sina to temporarily suspend some apps due to violations: regulator
Chinese internet firm Sina Corp will temporarily suspend its news app, blog platform and other products after it was found to have violated the country's internet regulations, Chinese authorities said on Wednesday. The Beijing Office of the Central Cyberspace Affairs Commission said in a post on its official WeChat account on Wednesday that Sina's platforms were disseminating untrue information and pornography, impacting public opinion. The regulator, citing an unnamed Sina executive, said the company will suspend its desktop-based Sina blog platform, as well as apps such as Sina News for a month to make rectifications.
- Financial Times•6 days ago
China LGBT community fears crackdown after Weibo content vanishes
Censorship of lesbian content on China’s popular microblog Sina Weibo has sparked fears of a deepening crackdown targeting gay users, one year after a public outcry pushed the platform to backtrack on ...
- TechCrunch•10 days ago
China's startup ecosystem is hitting back at demanding working hours
In China, the laws limit work to 44 hours a week and require overtime pay for anything above that. People from all corners of society have rallied in support for improvements to startup working conditions, while some warn of hurdles in a culture ingrained in the belief that more work leads to greater success. Programmers flocked to air their grievances, compiling a list of Chinese companies that reportedly practice 996 working.
- Reuters•10 days ago
Furore over 'black hole' photo forces China's largest image provider to shut
China's largest stock images provider, Visual China Group, shut its website and apologised on Friday after it falsely claimed copyright of images such as the first photo of a black hole and China's national flag. The company, which partners with U.S. photo agency , said in a post on its official Weibo account the incident revealed its weak management and that it was cooperating with authorities investigating the matter. The topic "Visual China apologises" was among the most-read items on China's Twitter-like Weibo platform on Friday, with over 250 million views.
- Reuters•10 days ago
Furor over 'black hole' photo forces China's largest image provider to shut
China's largest stock images provider, Visual China Group, shut its website and apologized on Friday after it falsely claimed copyright of images such as the first photo of a black hole and China's national flag. The company, which partners with U.S. photo agency , said in a post on its official Weibo account the incident revealed its weak management and that it was cooperating with authorities investigating the matter. The topic "Visual China apologises" was among the most-read items on China's Twitter-like Weibo platform on Friday, with over 250 million views.
Motley Fool•13 days agoWhy SINA Stock Fell 12.1% in March
Shares have lost roughly a third of their value over the last year due to weakening ad demand and slowing growth for a key subsidiary.
- Motley Fool•13 days ago
Why Weibo Stock Fell 14.2% in March
Weibo stock is up roughly 20% year to date despite last month's sell-offs.
- Zacks•14 days ago
The Zacks Analyst Blog Highlights: Facebook, Twitter, Weibo and Alphabet
The Zacks Analyst Blog Highlights: Facebook, Twitter, Weibo and Alphabet
- Zacks•17 days ago
How Social Media Giants are Fighting the Fake News Menace
Social media companies like Google, Facebook, Twitter and Weibo are stepping up efforts to curb the spread of fake news.
- InvestorPlace•18 days ago
Best Stocks for 2019: Weibo Is Just Waiting to Surge
Editor's note: This article is part of InvestorPlace.com's Best Stocks for 2019 contest. Kyle Woodley's pick is Weibo (NASDAQ:WB).It feels greedy to complain about an 18% return after a little over three months. But that gain doesn't sound nearly so sweet when you consider that parking the bus in the S&P 500 would've netted you about 15%.When you invest in a growth-y, emerging-markets play such as Weibo (NASDAQ:WB), you're simply hoping for much, much more than a couple of points of market outperformance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut none of this should come as a surprise. Weibo has been running with the same script that held it back in 2018, and that I mentioned in the introduction to my Best Stocks for 2019 pick.The good news is, things finally might be on the verge of turning around for WB stock. Weibo Keeps Doing Its JobA quick refresher: Weibo shares hemorrhaged 43.5% in 2018 - a year in which the company also grew revenues by 49% year-over-year and net income by 54% year-over-year. * The Elite 8 Stocks to Buy for Massive Outperformance Sure, investors didn't have the benefit of knowing the results of Weibo's final quarter during calendar 2018. But the stellar annual results didn't come out of left field. Everyone paying attention saw that the Chinese microblogging and social media company was on pace for a special operational year.By the by, here's what Weibo's fourth quarter -- announced in March -- looked like: * Revenues: $481.9 million (+28% YoY) * Ad & Marketing Revenues: $470 million (+35% YoY) * Non-GAAP Net Income: $183.6 million (+26% YoY) * Non-GAAP Net Margin: 38% * Monthly Active Users (December 2019): 462 million (+18% YoY) * Average Daily Active Users (December 2019): 200 million (+16% YoY)If you're going to pick Weibo apart on anything -- and investors certainly did, considering the sharp selloff after its Q4 report -- it might be the company's revenue forecast. WB is looking for Q1 sales growth of 20.5% to 23.5%, which doesn't sound like much compared to Q1 2018's 76% jump in revenues.But it sounds a lot better than what the average S&P 500 company is expected to deliver over the next couple months. FactSet is estimating a mere 4.8% year-over-year revenue growth rate for Q1.In short: Weibo is continuing to grow like a weed. That's not the problem. China itself is … or perhaps, was. Watch China to Understand WB StockAs I mentioned in my introduction to WB stock, Weibo suffered the same fate a lot of Chinese equities did in 2018: Pessimism about China's economy drained the bathwater and took a lot of babies with it. I wrote back in December:"Everyone's well aware of at least one of the woes: China's tariff standoff with the United States. But there have been numerous other worries, such as the deep fourth-quarter declines in oil and other energy prices, slowing growth that has shown up in disappointing GDP figures (Q3's 6.5% growth is the worst since 2009) and the rollout of policies to spur commercial banks to lend to private Chinese companies that is being seen negatively -- as a form of protective stimulus rather than a growth measure."This year hasn't been entirely different, with spotty Chinese economic data points popping up here and there. But the potential for a tide change in China to lift stocks like Weibo became evident over the past few days, as a couple clouds began to lift.The U.S. appears to be closing in on a trade deal with China. We've heard this before, of course -- several times -- but optimism typically wins out until a potential deal collapses.The most recent comments from U.S. officials hint that we might be in for the same kind of tease again. Myron Brilliant, executive vice president for international affairs at the U.S. Chamber of Commerce, told Financial Times, "Ninety percent of the deal is done, but the last 10% is the hardest part, it's the trickiest part and it will require trade-offs on both sides."But you know Wall Street is clinging to that "ninety percent."Meanwhile, China's manufacturers returned to growth in March after four months of contraction, according to a Caixin/Markit survey. And Chinese services-sector activity last month hit its highest point in a year.It's no coincidence that WB stock has popped 19% in just five days. Investors know that Weibo is a sparkplug, but they need to regain confidence that China broadly won't slow down even more, hampering Weibo's still-lofty growth expectations.Right this minute, things are looking up for my Best Stocks contest pick.Kyle Woodley is senior investing editor of Kiplinger.com. He currently is long WB and short patience. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Low-Priced Tech Stocks With Great Potential * 9 Stocks That Would Be Hurt By a Mexico/U.S. Border Closure * The Era of Car Ownership Is Over. And These 4 Charts Prove It Compare Brokers The post Best Stocks for 2019: Weibo Is Just Waiting to Surge appeared first on InvestorPlace.
TechCrunch•19 days agoRuhnn, a Chinese startup that makes influencers, raises $125M in U.S. IPO
Ruhnn, a company that enables influencers to sell through e-commerce and isplotting to change the face of China's fashion industry, has raised $125million after it listed on the Nasdaq on Wednesday
- Insider Monkey•19 days ago
Here’s What Hedge Funds Think About Weibo Corp (WB)
Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly […]
Bloomberg•20 days agoThis Time Is Different for the Yield Curve? They Said That Last Time
Skeptics from Goldman Sachs Group Inc. to Morgan Stanley Investment Management say the curve’s recessionary signals may be distorted now as a result of central-bank policy that’s kept interest rates exceptionally low since the financial crisis. More than a decade ago, then-Federal Reserve Chairman Ben S. Bernanke dismissed the curve’s predictive powers after two of the most widely watched yield spreads inverted and then went flat. In Bernanke’s camp were then-Treasury Secretary John W. Snow and bond king Bill Gross.
- Simply Wall St.•26 days ago
What Should Investors Know About Weibo Corporation's (NASDAQ:WB) Future?
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! The most recent earnings update Weibo Corporation's (NASDAQ:WB) released in December 2018 showed...
- InvestorPlace•28 days ago
5 Social Media Stocks to Buy Instead of Facebook
Facebook (NASDAQ: FB) is one of the few social media stocks that technology investors should hold in their core portfolios. Still, diversification within this subsector offers a margin of safety, which means considering other stocks is also a good idea.Besides, after significant selling in Facebook stock since summer 2018 has sent the stock to a low of $123, investors have started opening up to holding other instant messaging-based companies.Facebook's underperformance is a risk factor for investors in 2019. Negative media coverage that undermines the site's security and privacy issues could convince addicted users to finally quit the site. Those users may opt to use Facebook's WhatsApp or Instagram, but that will still hurt the company's profits. WhatsApp is not making much revenue and Instagram ads have a sharply lower profit margin than those posted on the News Feed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks With Key Products That Face an Uncertain Future So, how should investors diversify away from this networking giant? Here are five social media stocks to buy instead of Facebook. Twitter (TWTR)Source: Shutterstock Twitter (NYSE:TWTR) is stuck in a prolonged trading range of between around $26 and $34. Every time the stock drops to the $26 range, it rallies. Likewise, when TWTR stock is $34 - $35, traders lock in profits. At a $25 billion market cap, TWTR stock is 19 times smaller than that of Facebook's $481 market cap.At that market price, investors get a micro-blogging services firm that is becoming more appealing to advertisers. Cleveland Research wrote that encouraging feedback from advertisers would justify an increase in revenue estimates for Twitter.At a presentation at the Morgan Stanley conference, Twitter said it was cleaning up its user base. DAU and MAU numbers no longer matter so much when those activities just measure bots and spammers. Instead, Twitter will baseline its measures against revenue generation per user. For the investor, that is a welcome change in metrics.Advertisers are more than happy at the changes by TWTR. They will become the primary destination site for starting online conversations on products. The audience, mostly on a mobile device, will see and interact with the chatter, strengthening the advertising push. Snap Inc (SNAP)Source: Shutterstock Snap Inc (NYSE:SNAP) started the year at around $5, but SNAP stock has risen steadily to over $10.70 on the markets recently.The company reported strong Q4/2018 results on Feb. 5. Its introduction of advertising video ads that users could not skip added to the bottom line. Getting users to view ads in exchange for the free use of Snap's messaging and camera features is a more than fair compromise.SNAP stock investors liked the ad-friendly shift: SNAP stock is holding up at the $10 level and could head higher for 2019. Facebook clearly has a problem monetizing and growing Instagram if Snap continues to draw in more users. Snap might even win back the users who left to Instagram, following Snap's disastrous app update.In the fourth quarter, Snap reported record revenue of $390 million, up 36% from last year. It reduced its operating losses, net loss, even after DAUs were comparable to last year's levels. DAUs were 186 million, similar to the 187 million reported last year. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Investments it made in 2019, especially in the area of long-term scalability, will pay off for the remainder of the year and beyond. As more advertisers shift some funds allocated from Facebook to Snap instead, Snap may achieve profitability sooner. And when that happens, SNAP stock will continue its climb. At a 14 billion market cap, SNAP stock is smaller than TWTR stock. That could change if SNAP recovers back to its 52-week high of $16.85. Weibo (WB)Source: Shutterstock Weibo (NASDAQ:WB) bottomed in the low $50's in January and attempted to rally back to the $75 level, only to close recently at $58.70. It has a market cap of $12.8 billion, while WB stock is valued at a 23.8X price-to-earnings ratio. Investors grew nervous following its fourth-quarter report. Worries over no U.S. and China trade deal for the week of March 18 - 22 also added to the selling pressure.Weibo reported MAUs of 462 million in the fourth quarter. Advertising and marketing revenue rose 25% year-over-year to $417 million. DAUs rose 28 million from last year to 200 million. The company guided Q1 revenue of between $395 million - $405 million. This is within consensus, but because Weibo did not guide above it, WB stock sold off.The leading social media in China captured a higher market share in digital advertising budget. This enabled the company to report a solid 28% year-over-year increase in net revenue of $481.9 million. Weibo controlled cost and expenses too. Costs rose to $298.8 million, up from $232.2 million. Cost increases were due to higher revenue shares to live broadcasters. The higher personnel-related costs and expenses will pay off in future quarters as the staff brings in more business. Sina Corporation (SINA)Source: Shutterstock Sina Corporation (NASDAQ:SINA) is another Chinese media stock investors should consider over FB stock. It describes itself as a leading online media company serving China and the global Chinese communities. Sina.com is a notable digital media network, while Sina mobile has a mobile portal and mobile apps. Weibo is the social media enabler for the firm.The company reported Q4 results on March 5. Revenue grew 14% from last year, helped by a 14% year-on-year increase in ad revenue, to $484.3 million. Gross margin improved to 79%, up from 75% last year.Sina spent more for the year, although some of the increase is due to accounting changes and goodwill and an acquired intangibles impairment charge for its non-core business line. The company ended 2018 with $2.3 billion in cash and cash equivalents. This fell from the previous year, due to a share repurchase program and a repayment of convertible senior notes. * 7 Consumer Discretionary Stocks to Buy Now Sina forecasts revenue growing at 18% - 25%. Compared to its 33x P/E, the PEG of 1.56X is comparable to Facebook's 1.3X. But China's fast-growing internet community will drive Sina's audience growth for years to come. Alphabet (GOOG)Source: Brionv via Wikimedia (Modified)Although Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has no real pure play in social media, investors cannot ignore its giant presence as a search engine, which makes it notable among social media stocks. Google is the gateway search engine to get to other social media sites. At $821 billion, the company is twice as large as Facebook by market cap. And for good reason.Alphabet abandoned its social media hopes when it closed down Google+. Now that it is refocusing its growth on advertising revenue on the search engine, investors should consider holding GOOG stock. Alphabet announced a Google game service -- Stadia -- last week that could draw a big audience. Should social media, which involves sharing content, posting updates and messaging, bore users, gaming is the next area of continued online activity.Stadia will allow games to run on Google servers. The ecosystem will allow users to play games and also watch them. YouTube could become the means by which users are a spectator on the platform. With YouTube becoming even more than just streaming content, the value of the platform increases. Investors could invest in that value-add by buying GOOG stock.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post 5 Social Media Stocks to Buy Instead of Facebook appeared first on InvestorPlace.
- InvestorPlace•last month
3 Chinese Stocks to Take a Bite Out Of
It wasn't that long ago investors were face-to-face with a menacing bear in the major U.S. markets. The tangle, of course, proved shorter-lived than a sand castle built in a tidal pool at high tide. But that doesn't mean there aren't stocks trending lower. For investors seeking diversification from the U.S. market's raging bull, this trio of Chinese stocks is setting up nicely for short-sellers.Going across-the-pond and shorting Chinese stocks makes strategic sense, especially considering many of the country's leading names are still trading in bear markets. * 10 Stocks on the Rise Heading Into the Second Quarter Bottom line, it can be profitable to pick up others' unwanted garbage at bargain prices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, as I'll discuss below, the charts for Weibo (NASDAQ:WB), Sina (NASDAQ:SINA) and Baidu (NASDAQ:BIDU) strongly suggest otherwise. In fact, WB stock, SINA and BIDU are among the best short-selling opportunities in Chinese stocks: Weibo (WB) Click to EnlargeWhat can I say or more aptly, what can the chart of WB stock say other than the trend is your friend if you're a bear. A couple of weeks ago Weibo, a social media and gaming platform, announced quarterly results which on the surface sounded quite bullish.The Chinese stock beat Street earnings estimates by 5 cents with profits of 73 cents per share. Weibo also saw sales growth of 28% from a year prior that matched forecasts and issued in-line guidance for the company's first quarter. Nevertheless, it's been all downhill ever since for WB stock.Technically, Weibo's earnings report sent shares tumbling from a multi-day challenge of the 200-day simple moving average and firmly back into bear territory. Now, and a couple of weeks later, it's time to put shares on the radar for a short.Currently, this Chinese stock is toiling in a consolidation pattern wedged at the 62% retracement level from WB's 2016 - 2018 bull cycle. I'd suggest shorting WB beneath the recent low of $59.35 as shares breakdown.For money management, the recommendation is to use the three-day high for exiting. As of this writing that's $62.52. But if conditions go according to plan, a short trigger should reaffirm Weibo's bearish trend and put the 2019 low of $51.15 as a logical first target for profit-taking. Sina (SINA) Click to Enlarge SINA is another internet company which sounds a lot like the Yahoo portal, which offers users a vast and varied amount of content. And much like Yahoo, I have to wonder if anyone, other than my dad, goes there anymore to catch up on the news?Apparently, some other folks do use the SINA platform.SINA announced year-over-year sales growth of 13.8% earlier this month when it released its quarterly confessional. However, revenues were a tad weaker-than-forecast. Also, this Chinese stock's earnings doled up a big-time profit miss of 41 cents per share on actual earnings of 22 cents vs. estimates of 63 cents.Much like WB stock, earnings have taken their toll on SINA shareholders as the report resulted in this Chinese stock gapping lower out of a challenge of the 200-day simple moving average. But the trend looks even worse for bulls and stronger for bears on the provided weekly price chart.On the larger timeframe, SINA's downtrend has been firmly rooted in a consolidation period beneath the 62% retracement level. And with the earnings reaction helping break shares through angular support and a supportive-looking weekly stochastics set-up, SINA is in position for shorting. * 7 Dual-Class Stocks That Will Outperform My recommendation is to simply short SINA stock beneath the two-week doji closing low of $58.09. And to keep one's exposure contained off and on the price chart, a blended stop above $60.20 looks approachable. Baidu (BIDU) Click to Enlarge Not that I'm saving the best for last, but as the detailed chart work might hint at, BIDU has garnered this strategist's attention in the not-too-distant past. And on those many occasions, I've actually been a consistent supporter of buying this Chinese stock on weakness. But I recently changed my tune.In late February I cautioned investors against owning BIDU and even to short the tech giant. The bearish lean followed an overall much healthier-than-expected earnings report, but one which failed to rally shares despite having been largely left out of 2019's bullish run in the market.Fast forward a couple of weeks and despite both U.S. and China's benchmark averages rallying to fresh relative highs, BIDU stock has remained in the captivity of a bearish flag pattern beneath oodles of technical resistance.For like-minded investors that wish to trade this Chinese stock's friendly trend, for now, I'd put shares on the radar for shorting beneath the prior week's opening low of $165.60. That would have the impact of breaking the flag's angular support and a second attempt for BIDU reaffirming its bearish trend.For money management and to reduce unnecessary exposure on the Baidu price chart and in one's trading account, a blended stop above $173 looks about right in today's market.Similar to our last write-up, the 50% retracement level near $147 looks like a good spot to take initial profits. And if conditions become even more favorable, angular trend-line support near $135 would be a second area to lock in profitable gains.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 3 Chinese Stocks to Take a Bite Out Of appeared first on InvestorPlace.
- InvestorPlace•last month
7 Beaten-Up Stocks to Buy as They Reverse Course
Stocks are off to a great start in 2019. All three major indices are up more than 10%, led by a 16% rally in the Nasdaq Composite, and it's still only March.But, not all stocks have had a great year thus far. For every Roku (NASDAQ:ROKU) and Snap (NYSE:SNAP) -- two stocks that are already up more than 100% year-to-date -- there's another stock on the other end of the spectrum that has struggled for gains in 2019.For some of those struggling stocks, the pain will persist because the fundamentals are weak, and only getting weaker. Indeed, that's probably true for most stocks that have struggled amid the recent market rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, for other beaten up stocks, the pain could end soon. The fundamentals are weak today, but getting better. When they do get better, they will converge on a beaten up stock against a healthy market backdrop, and that convergence could spark a rip-your-face-off rally.That's why I've compiled a list of seven beaten up stocks that I think are ready to reverse course soon. These stocks may stay weaker for longer. But, the underlying fundamentals are improving, and ultimately, buyers who exercise patience at these levels should be rewarded with a big rally in the near- to medium-term future. * 10 Stocks on the Rise Heading Into the Second Quarter Which beaten up stocks made the cut? Let's take a look. Axon (AAXN)Source: Shutterstock % Off All-Time Highs: 37%One of my favorite growth stocks back in 2017 was Axon (NASDAQ:AAXN). The thesis was simple. The law enforcement world is outdated. It needs to be technologically upgraded. Axon provides solutions that do just that across a wide spectrum applications, including smart weapons, body cameras and digital recording systems. Adoption of these solutions will grow by leaps and bounds over the next several years. As it does, Axon stock, which seemed hugely undervalued at $20, will rally.Fast forward two years. The big rally in Axon stock happened. It jumped from $20 to nearly $80 in a year and a half. That rally was overdone. Now, the stock has pulled back in a big way to below $50. This pullback is likewise overdone. The core fundamental growth narrative of Axon improving processes and outcomes across the law enforcement world remains healthy and unchallenged (there are basically no competitors). The stock just got ahead of itself at $80.I've long maintained that Axon stock is fundamentally supported and attractive at $50. I maintain that stance today, and that's why I think this stock is ready to reverse course soon. Weibo (WB)Source: Shutterstock % Off All-Time Highs: 56%Calendar 2018 was unkind to all stocks, but particularly so to Chinese tech stocks. In the slaughtered China tech group, one of the biggest losers was Weibo (NASDAQ:WB), which dropped more than 60% off all-time highs and remains more than 55% off all-time highs today.Surprisingly, the big drop in Weibo stock had very little to do with Weibo-specific fundamentals. Those fundamentals have remained very good. The social networking platform has continued to add users and grow revenues at a robust pace, while it has largely maintained its margin profile and consequently grown profits at an equally robust pace. But, what happened in 2018 is everyone freaked out about a slowdown in China, and those fears coupled with escalating trade and FX headwinds to create a tremendous amount of selling pressure on Weibo stock. * 5 of the Best Stocks to Buy Under $10 Things are looking up for Weibo stock in the New Year. China's economy appears to be stabilizing. Trade headwinds are less severe. As are FX headwinds. Meanwhile, the company just reported quarterly numbers that comprised 28% revenue growth, 18% user growth and 26% profit growth. In other words, the macro is improving, and the micro remains favorable. As such, it seems like only a matter of time before Weibo stock stages a huge comeback rally. Nvidia (NVDA)Source: Shutterstock % Off All-Time Highs: 43%Chip giant Nvidia (NASDAQ:NVDA) used to be considered the unstoppable "AI company". Everyone thought that the company had a monopoly in supplying the building blocks for AI-powered technologies. Everyone also assumed that demand in AI-end markets would remain robust forever. Neither of those is true. Nvidia has stiff competition, and demand has slowed. As such, Nvidia has gone from being an unstoppable growth stock, to a severely beaten-up stock trading more than 40% off all-time highs.But, things should improve in 2019. The big headwinds that weighed on NVDA stock in 2018 were inventory issues putting pressure on margins, and trade and economic uncertainty headwinds diluting demand. Those headwinds will become old news in 2019. Nvidia is already cycling through its inventory issues, and trade and economic uncertainty headwinds have become significantly less severe. As such, in 2019, demand should come back into picture, while supply should be reduced. That will create a favorable backdrop for Nvidia to return to healthy revenue growth and gross margin expansion.When that happens, NVDA stock will stage a huge turnaround toward and potentially above $200. Capri (CPRI)Source: Shutterstock % Off All-Time Highs: 54%Shares of global fashion conglomerate Capri (NYSE:CPRI) have been hammered over the past several quarters for various reasons. One, the core Michael Kors brand has lost steam. Two, margins have been under pressure. Three, investors have questioned the Versace acquisition. All together, investor sentiment has been weak, and CPRI stock has dropped more than 50% off all-time highs.I think these concerns are overblown. In the big picture, the morphing together of three luxury fashion brands (Michael Kors, Jimmy Choo and Versace) under one fashion conglomerate umbrella mitigates the financial risks and noise associated with fashion-trend cycles, while boosting brand awareness and equity. Consequently, while the Michael Kors brand will continue to cycle between hot and cold for the foreseeable future, Capri's revenues in 2019 and after will show significantly greater stability. Margins will likewise improve with this enhanced stability. And, because of revenue and margin stability, the Versace acquisition will prove to be more than worth it -- it will ultimately be seen as necessary. * 7 Hot Stocks Under $4 It's only a matter of time before the market realizes this. When it does, investors will flock to this really cheap stock (9-times forward earnings) and that flocking could spark a big recovery rally. AT&T (T)Source: Shutterstock % Off All-Time Highs: 30%The narrative at AT&T (NYSE:T) has been dominated by cord cutting for several years now. Specifically, as more consumers have cut the cord, AT&T's historically stable cable business has struggled. That has created a drag on the company's revenue, margins and profits. To make matters worse, with the acquisition on Time Warner, AT&T is now one of the most indebted companies in history. A bunch of debt on muted profit growth doesn't exactly attract buyers. It attracts sellers, and that's exactly what has happened to this stock.But, a turnaround could be in store. The mainstream and widespread roll-out of 5G wireless coverage is coming, and that will provide a much-needed boost to this company's wireless business. Meanwhile, Time Warner content assets should give AT&T the necessary firepower to expand more deeply into the streaming world and offset cord cutting weakness. Rates have also stopped climbing, so pressure on the balance sheet is easing while the big 6.6% dividend yield is relatively more attractive.All in all, the fundamentals underlying AT&T stock will improve in 2019. As they do, this super cheap, beaten up stock will outperform. Twitter (TWTR)Source: Shutterstock % Off All-Time Highs: 57%In 2018, social media giant Twitter (NYSE:TWTR) was on a roll. Until it wasn't. The stock went from $25, to $50, back to $25, all in the same year, as investors couldn't figure out whether user growth really mattered. Ultimately, the market has settled on the fact that it does matter, as revenue growth and margin expansion have remained robust, but the user base has declined, and Twitter stock trades well off all-time highs.The market made the wrong conclusion here. Monthly active users is a meaningless metric without engagement. What are eyeballs if those eyeballs aren't really interacting or paying attention? Engaged eyeballs for advertising purposes are infinitely more valuable because they lead to more data, which leads to better targeting, more relevant ads, and more ad conversions. At Twitter, those engaged eyeballs continue to go up, as the number of engaged daily active users is growing at a ~10% year-over-year rate. * 5 Stocks To Buy for the Happiest Employees So long as that number continues to grow, revenues will grow, and so will margins. The market will realize this in 2019. When it does, you will see Twitter stock stage a big turnaround. Activision (ATVI)Source: Gamevil Inc. via Flickr% Off All-Time Highs: 48%Much like Twitter, Activision (NASDAQ:ATVI) stock was on a roll. But the stock went from $65, to $80, to $45, all in a matter of twelve months, because near-term positives quickly turned into near-term negatives. Specifically, everyone was expecting a big holiday quarter out of Activision thanks to a new Call of Duty release. That release got delayed. When the game finally did get released, adoption and engagement rates were underwhelming. Fans were disappointed. So were investors. ATVI stock dropped 50%.But, this 50% haircut in ATVI stock seems way overdone. In the big picture, Activision still has three big trends working in its favor. One, digital and mobile consumption globally is only growing, and that lends itself to continued growth in the video game industry, of which Activision is a big player with a broad portfolio of secular appeal games. Two, esports is just starting to come into its own, and Activision is behind arguably the world's most important esports league. Three, innovation in the video game industry is nearing a breakthrough with things like AR/VR and cloud gaming, and those breakthroughs could supercharge growth across the whole industry.Overall, the long-term positives here significantly outweigh the near-term negatives. As such, patience will be rewarded. Eventually, near-term negatives will phase out. When they do, Activision stock will pop in a big way.As of this writing, Luke Lango was long ROKU, AAXN, WB, CPRI, T, TWTR and ATVI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Beaten-Up Stocks to Buy as They Reverse Course appeared first on InvestorPlace.
- Thomson Reuters StreetEvents•last month
Edited Transcript of WB earnings conference call or presentation 5-Mar-19 11:00am GMT
Q4 2018 Weibo Corp Earnings Call
