|Bid||68.14 x 1200|
|Ask||68.45 x 1400|
|Day's Range||65.20 - 69.29|
|52 Week Range||51.15 - 140.58|
|Beta (3Y Monthly)||1.54|
|PE Ratio (TTM)||28.89|
|Earnings Date||Mar 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||69.53|
BEIJING, Feb. 22, 2019 /PRNewswire/ -- Weibo Corporation (WB), a leading social media for people to create, share and discover content, will announce its unaudited financial results for the fourth quarter and fiscal year 2018 before the market opens on Tuesday, March 5, 2019. Following the announcement, Weibo's management team will host a conference call from 6 AM - 7 AM Eastern Time on March 5, 2019 (or 7 PM - 8 PM Beijing Time on March 5, 2019) to present an overview of the Company's financial performance and business operations. Weibo is a leading social media for people to create, share and discover content online.
In the latest trading session, Weibo Corporation (WB) closed at $64.28, marking a -1.91% move from the previous day.
The comments from Liu Cixin, seen as China’s equivalent to Arthur C. Clarke, come from a 2015 interview that began circulating widely on social media recently after the film Wandering Earth, which is based on one of his novellas, took in 2 billion yuan ($300 million) in just a week. "Everyone was sitting in front of a computer, and nobody knew what anyone else was doing," Liu said in the interview. Re-posted more than 3,000 times in hours on Weibo, China’s answer to Twitter, Liu’s comments prompted a response from the national department in charge of SOEs at 9:26 p.m. on Monday.
While analysts debate whether the volatility and general market selloff are behind us, I would like to discuss why I am getting ready to take another look at the positive long-term prospects of three Chinese stocks: Weibo (NASDAQ:WB), JD.com (NASDAQ:JD) and Ctrip.com (NASDAQ:CTRP).It's probably the understatement of the past 12 months to say that the trade wars between the U.S. and China have brought significant uncertainty to the global stock markets. As a result, most Chinese stocks were under pressure in 2018 and are now much cheaper than they were a year ago.But despite the negative sentiment toward these stocks, one thing remains true: Weibo, JD.com and Ctrip.com stock and many of the Chinese American Depositary Receipts (ADRs) listed in U.S. exchanges still offer investors the possibility to invest in the growing Chinese consumer economy. They were all darlings of investors and ranked among the best stocks in the market until the escalating war of words led to the start of various tariffs between China and the U.S in 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAdding salt to the wound, the International Monetary Fund (IMF) has recently warned that China, the world's second-biggest economy, has been slowing considerably.Even so, the wide-reaching economic implications of its political challenges and a potential cooling off in China shouldn't get in the way of a sensible, long-term investing strategy.The next several weeks may bring more volatility in WB, JD and CTRP shares. And I do not expect to witness a major favorable sentiment shift toward Chinese stocks. However, although short-term investors should expect daily price swings in these Chinese stocks as each company reports earnings in the coming days, long-term investors may see any further price declines as opportunities to go long. * 10 Stocks That Every 20-Year-Old Should Buy With all of that in mind, here's a deeper look into why you should consider these three Chinese stocks to buy. Source: Shutterstock Weibo (WB)Weibo, a social media company with a popular micro-blogging website, is expected to report earnings on Feb 12.WB, which was spun off from Sina Corp (NASDAQ:SINA) in 2014, opened with an IPO price of $17 in April 2014. Alibaba (NYSE:BABA) owns 32% of Weibo and is the second-largest shareholder after WB's parent company SINA (which owns about 46%).Chinese internet celebrity (better known as "wanghong") accounts at Weibo, and the website's rich multimedia functionalities help make WB a much loved and somewhat indispensable social media company within China. Furthermore, WB's recent investments in live video streaming and fintech have already started contributing to the bottom line.The company's revenue comes from two main segments: * Digital advertising (almost 80% of revenues) * Value-added services (just over 20% of revenues)As a leading social media company, Weibo embodies Chinese consumers' love of social networking. Therefore, in addition to advertising income from Alibaba and Sina, it has been increasing advertising revenue from third parties, mostly thanks to being the website of choice for celebrity accounts.Weibo is still a high-growth company whereby I expect the earnings report to show that its revenue growth is still over 50%. This growth in revenue trickles down to the company's bottom line, improving its earnings-per-share. Its daily active users (DAU) is over 200 million and growing, a fact that contributes to its revenue.Moreover, WB has a quick ratio of 4.1, which demonstrates the ability of the company to cover short-term liquidity needs. Therefore, the group would be in a robust position to weather any headwinds due to an economic slump.Although many analysts have expressed growth concerns regarding China, the country's economic fundamentals have vastly improved over the past decade; the internet population is still booming and money continues to pour into Chinese companies operating in this space -- factors that help support the long-term durability of WB stock.Yet, despite this longer-term strength, WB stock has had a difficult period in recent months. And this is despite its strong, proactive management, which has been successfully diversifying Weibo's advertising, broadening its social influence, especially among Chinese celebrities, and increasing its monetization.Over the past year, WB stock is down almost 46% and its 52-week price range has been $51.15 (Jan. 24, 2019) - $142.12 (Feb. 15, 2018).After investors' harsh response to the uncertainty over trade war threats in 2018, Weibo stock has suffered from a damaging technical picture. Its long-term technical chart still looks rather weak and it is pointing to the possibility for more choppy action, possibly between $50 - $65.When the company reports earnings on Feb. 12, investors will pay extremely close attention to the details in the company's quarterly results as well as any guidance on the health of the Chinese economy. The options markets are pricing in an approximate post-earnings move of 12% in either direction in WB shares.Any disappointment in the earnings statement could quickly send the shares back below $60.Weibo stock has a solid story in a country fascinated with social media, thus it remains a long-term growth play on a fundamental basis and it is still one of the best stocks to invest in China. However, in the near-term, there might still be a weakness in the WB stock price, a possibility that investors should factor in their investment decisions. Source: Daniel Cukier via Flickr JD.com (JD)JD.com, the largest Chinese online retailer out of Beijing, is expected to report earnings on Mar. 1.In addition to the online e-commerce operations, the group also has hundreds of warehouses and thousands of delivery stations as well as fresh food stores across China.JD stock has been in a downtrend for over a year whereby its 52-week price range has been $19.21 (Nov. 13, 2018) - $549 (Feb. 26, 2018). The downtrend came amid a series of company-specific and global macro events.In June 2018, Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google announced that it would invest $550 million in JD.com. Both companies stated that the combined synergies would enable them to collaborate on various e-commerce and technology related areas. Under the agreements, Google received "27,106,948 newly issued JD.com Class A ordinary shares" at a price that equated to "$40.58 per American depository share." Although the cooperation between the two companies is likely to benefit both of them in the years to come, so far, JD stock hasn't reflected any benefit.On July 6, tariffs on $34 billion worth of Chinese goods came into effect and the selloff in Chinese stocks began. In August, JD.com's Q2 results gave a mixed message, hampering investor hopes that the downtrend might finally come to an end.September was also a difficult month for JD stock as in late August 2018, its founder and CEO Richard Li, who owns over 85% of JD.com's voting power, was arrested in the U.S. following sexual misconduct allegations. The troubling headlines caused a further selloff in JD stock.The selling intensified following the earnings report on Nov. 18, after which the shares hit a low not seen since June 2016.In summary, over the past year, JD stock is down over 43% and its long-term technical chart has not yet stabilized. Between now and when it reports earnings on Mar. 1, it is possible that JD shares will have a volatile reaction.JD.com competes aggressively with Alibaba in China's massive e-commerce market. When BABA announced its quarterly results on Jan. 30, the stock was up almost 7% on the day. Therefore, we might expect a similar positive reaction from JD.com stock if investors like what they hear in the earnings report.Otherwise, the shares could easily go down to re-test the November low of $19.21 before the stock price forms a healthy base.In the next few weeks, trading in JD stock is likely to be choppy with both widely up and down days. and any short-term up move is likely to meet resistance between the $25 - $30 levels. * 10 Best Dividend Stocks to Buy for the Next 10 Months However, I think JD.com is still one of the best stocks China has to offer, and it could easily find a place in investors' portfolios … if they're in it for the long haul. Within two years, I expect JD stock to easily reach the lower $40's level, or the price Google paid for the shares in 2018. Source: Thomas Galvez via Flickr Ctrip.com (CTRP)Ctrip.com, a travel services provider, is expected to report earnings on Mar. 13.The travel group has a history of beating earnings estimates and coming out with healthy financial numbers across the board. If the Chinese economy is indeed experiencing considerable headwinds, the next earnings report, however, may show a slowing of growth in the short term -- a result that may be followed by a drop in the price of CTRP stock.Currently, CTRP's revenue comes from four main segments: * Accommodation Reservations * Transportation Ticketing * Packaged Tours * Corporate TravelWhen CTRP reports in about a month, I would not be particularly surprised to see some concern over future guidance in regards to the corporate travel segment. A slowing Chinese economy would likely translate into falling corporate client demand, decreasing margins and slower revenue growth for Ctrip stock.On the other hand, the lunar new year celebrations of February 2019 are likely to have boosted demand for packaged tours as well as the personalized travel arrangements of the Chinese middle-class, where Ctrip.com's main focus lies.I also expect the earnings report to show that the management is pursuing different revenue streams and working to further its organic growth by reaching out to its young customer base, mainly under the age of 35.As China is becoming more urbanized, younger Chinese citizens are also beginning to spend more money on domestic and international travel, a trend that Ctrip is well placed to take advantage of.Over the past year, CTRP stock is down almost 25%, and its 52-week price range has been $25 (Nov. 13, 2018) - $51.91 (June 15, 2018). For those investors who pay attention to short-term technical charts, it has been forming a base between $25 - $35, a level that now acts as a support zone. Furthermore, Ctrip's technical momentum indicators, which describe the speed at which prices move over a given period, are currently in overbought territory. Although these indicators can stay overbought for quite a long time, short-term profit-taking is probably around the corner.The current short-term overbought chart follows several months of decline in the CTRP stock price, which has caused a damaging longer-term technical picture. Therefore, CTRP stock will need to stabilize and build a base again before another long-term sustained leg up can occur.When the company reports earnings on Mar. 13, any disappointment in Ctrip's earnings statement or future outlook could quickly send the shares back below $30. Thus, there might be weakness in the CTRP stock price in the near-term that potential investors should anticipate.Nonetheless, as travel demand in China grows due to demographic developments, Ctrip will be in a robust position to capitalize on its current market dominance. Within two to three years, investors who buy Ctrip are likely to be rewarded handsomely. As such, it is a standout among other stocks to buy for those with a focus on China.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 * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post The 3 Best Chinese Stocks to Buy for a Long-Term Portfolio appeared first on InvestorPlace.
Weibo's (WB) fourth-quarter results are expected to benefit from traction in video products but deceleration in mobile internet user growth in China may hurt results.
In the latest trading session, Weibo Corporation (WB) closed at $61.03, marking a +1.6% move from the previous day.
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Those dreams of a Samsung phone with some Supreme livery will remain just that. Samsung China, in an oddly-timed Sunday post on Weibo, is terminating its team-up with Supreme Italia. Yes, we're sure ...
Weibo Corporation (WB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Fisher Investments leader Ken Fisher (Trades, Portfolio) released his portfolio for the final quarter of 2018 last week, listing 78 new holdings. Warning! GuruFocus has detected 1 Warning Sign with WB. For the quarter, the firm's five largest new positions were Weibo Corp. (WB), EssilorLuxottica (ESLOY), NXP Semiconductors NV (NXPI), Alarm.com Holdings Inc. (ALRM) and HubSpot Inc. (HUBS).
We've all seen the headlines. China's economy is slowing. Rapidly. GDP growth clocked in at a near 30-year low in 2018. Retail sales growth is running at a 15-year low. U.S.-China trade tensions are creating geopolitical noise. Big companies from Apple (NASDAQ:AAPL) to Intel (NASDAQ:INTC) are warning about slowing China growth. All in all, the read from China has been quite negative for some time now. As such, Chinese stocks have been in free fall. But, it increasingly looks like the tide is turning in China. All those aforementioned negative reads? They are all backward looking. GDP growth is a snapshot of economic activity in 2018. Retail sales growth is a snapshot of consumer strength in late 2018. The Apple and Intel warnings are about what happened in late 2018. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Instead, if you observe forward-looking indicators like the CLI (composite leading indicator) and CCI (consumer confidence index) for China, there's a reason to believe that its economic activity bottomed in the last few months of 2018, and will pick back up in 2019. Consider the following: * The OECD's composite leading indicator for China (CLI) has increased month-over-month for two consecutive months (October and November). Historically speaking over the past ~20 years, back-to-back months of CLI improvement after a multi-month streak of CLI deterioration has always indicated a positive inflection point in China's economy. * The OECD's consumer confidence index for China (CCI) has increased month-over-month for three consecutive months (September, October and November). Much like the CLI, consecutive months of improvement in the CCI have historically signaled a turning point in economic trend for China. * The U.S. Dollar has significantly weakened against the Chinese Yuan in 2019, after strengthening throughout all of 2018. Out-sized U.S. Dollar strength diluted the value of China stocks in 2018. Reversion to a normal dollar should enhance the value of these stocks in 2019. * The latest buzz in the market is that U.S.-China trade talks are progressing in a constructive manner, and that a resolution will be reached soon. If so, that will reinvigorate consumer confidence and economic activity in China, and provide a boost for Chinese stocks. Overall, it increasingly looks like China's economy is on the cusp of a major turning point. This turning point will ultimately provide a major tailwind for hugely beaten up and really cheap Chinese stocks. Many of these stocks still have robust growth profiles, but their valuations suggest otherwise given bearish macroeconomic sentiment. * 10 Triple-A Stocks to Buy in February That sentiment will improve in 2019 as China's economy finds its footing. As it does, Chinese stocks will fly higher. With that in mind, let's take a look at seven Chinese stocks to buy now before the big turnaround. ### Tencent (TCEHY) Source: Shutterstock Chinese internet giant Tencent (OCTMKTS:TCEHY) has struggled significantly over the past several quarters due to a confluence of headwinds, including a broad slowdown in China's economic activity and the Chinese government putting a pause on new video game approvals. Both of those headwinds created major obstacles for Tencent. As an internet giant touching all aspects of China's digital economy, a slowdown in China's economic activity and confidence naturally weighed on Tencent's growth profile. Meanwhile, Tencent makes a big chunk of its revenue and profits from video games, so a pause on new approvals has significantly diluted the company's growth. Both of those headwinds will be left behind in 2018. As mentioned earlier, China's economy is turning the corner and will rebound in 2019. Meanwhile, China is once again approving video games, and just recently approved two mobile games from Tencent. With both of these headwinds moving to the sidelines, TCEHY stock, which is still 30% off recent highs, has plenty of room to run higher in 2019. ### Weibo (WB) Source: Shutterstock One of the most underrated and undervalued growth stories in China belongs to social blogging giant Weibo (NASDAQ:WB). Weibo is often called the Twitter (NYSE:TWTR) of China given similarities in the core platforms. But, Weibo is much bigger (~450 million monthly active users, versus ~300 million at Twitter). Weibo is also more profitable (42% adjusted EBITDA margins last quarter, versus 39% at Twitter) and growing faster. The only thing Weibo doesn't do better is make more ad revenue, but that will come with time as China's digital ad marketplace matures. Despite Weibo's favorable comparison to Twitter (WB has more users, it is more profitable and it is growing faster), the market is valuing Weibo at just $12 billion, and Twitter at $25 billion. That doesn't make much sense. The market is concerned about digital content crackdowns killing the growth narrative. They are also concerned about U.S.-China trade issues dampening growth in the digital ad marketplace. * 10 of the Best Stocks to Invest In for February Those concerns are overstated. China has been threatening digital content crackdowns for a long time. Nothing has happened, outside of Weibo continuing to grow at a 40%-plus rate. Meanwhile, those trade disputes will be resolved soon. As such, sentiment related to Weibo stock should improve dramatically in 2019. When it does, Weibo stock will fly higher, since this is a 40%-plus growth company with 40%-plus profit margins trading at just 18 forward earnings. ### Momo (MOMO) Source: Shutterstock Momo (NASDAQ:MOMO) is another really cheap and really beaten-up Chinese stock ready to rebound thanks to improvement in China's economy. Momo is another Chinese social blogging giant with online dating and live video service components. Investors didn't want to own this stock during the U.S.-China trade war because there have been fears related to a Chinese digital content crackdown, the company has a reliance on historically unreliable virtual currency revenue, and margins have been falling. But, a resolution in the U.S.-China trade war changes everything for MOMO stock. Investors will want to own this stock because its a 50%-plus revenue growth company with healthy profit margins and a steadily expanding user base, and the stock is trading at just 11X forward earnings and is 40% off recent highs. Those are the characteristics that usually lend themselves to a big rally when sentiment improves. ### JD (JD) Source: Daniel Cukier via Flickr Chinese e-retail giant JD (NASDAQ:JD) was one of China's biggest losers in 2018. The once high-flying tech stock peaked in early 2018, and proceeded to drop more than 50% throughout the balance of the year due to slowing revenue growth rates and compressing margins amid a rapidly slowing China economy. Calendar 2019 could have a completely different narrative for JD stock. Let's assume China's economic activity does pick back up in 2019, as leading indicators imply. Such a recovery would push JD's revenue growth rates up. Moreover, management has reiterated that 2018 was a big investment year. Those investments won't last in 2019, so margins should improve from lower spend and bigger revenue growth. Thus, JD will go from revenue deceleration and margin compression in 2018 to revenue acceleration and margin expansion in 2019. * 7 High-Dividend Stocks Yielding More Than 5% (Plus a Bonus) That is the sort of transition that could cause a big pop in JD stock. That is especially true considering the stock trades at under 0.5X trailing sales, its lowest multiple ever as a public company. Even really distressed companies like GoPro (NASDAQ:GPRO) and Fitbit (NYSE:FIT) trade at sales multiples above 0.6. Thus, JD stock is really undervalued, and an inflection in this company's narrative could spark a big rally in the stock. ### Alibaba (BABA) Source: Shutterstock The king of Chinese stocks is Alibaba (NYSE:BABA), and as the king of Chinese stocks, BABA was not spared in the 2018 bloodbath that scarred many stocks from China. At one point, BABA stock was nearly 40% off early 2018 highs. Today, the stock is still more than 20% off its 2018 highs. There has been a lot of concern regarding how a slowing Chinese economy will impact Alibaba's red-hot revenue growth trajectory. There has also been a lot of concern regarding the company's profitability amid rising competition and as the company expands into lower margin businesses. These two major concerns kept BABA stock depressed in 2018. That could all change in 2019. At its core, this is still a 50%-plus revenue growth business with multiple big potential businesses that span e-commerce, cloud, digital entertainment, AI and more. Thus, as goes China's digital economy, so goes Alibaba. China's digital economy isn't done growing anytime soon. Internet penetration rates are still well below the developed national average, while per capita expenditures are also well below the developed nation average. Thus, this growth narrative has runway. Investors will realize that in 2019 as China's economic conditions improve. This realization will push BABA stock steadily higher throughout 2019. ### Baidu (BIDU) Source: Simone.Brunozzi Via Flickr The Google (NASDAQ:GOOG) of China -- Baidu (NASDAQ:BIDU) -- was one of the more damaged Chinese stocks during the 2018 selloff. BIDU stock fell about 45% off early 2018 highs as concerns regarding slowing growth, compressing margins and government regulation spooked investors. Such concerns are unnecessarily short-sighted and lack scope. In the big picture, Baidu is a $12 billion revenue company. Google is a $130 billion revenue company, and still growing at a 20%-plus rate. That means Baidu is about 10% the size of Google in terms of revenues. Granted, Google is a global search giant (excluding China), while Baidu exclusively serves China. But, China GDP comprises about 15% of global GDP, and the ratio of China GDP to global GDP excluding China is about 17%. * 10 Consumer Stocks to Buy for Income Thus, at scale, Baidu should theoretically be about 20% the size of Google. Today, Google is a $750 billion company. Baidu is 8% that size, at a $60 billion valuation. This discrepancy will ultimately be corrected once China's macroeconomic sentiment improves, and there's a chance of that happening in 2019. ### Ctrip (CTRP) Source: Thomas Galvez via Flickr China online travel agency Ctrip.com (NASDAQ:CTRP), like other China stocks, had a rough 2018 due to ongoing macroeconomic uncertainty. CTRP stock, though, got hit worse than others due to its reliance on a healthy economy for strong growth (consumers don't travel in a bad economy). At its low, CTRP stock had plunged nearly 60% off 2017 highs. The reality, though, is that China is turning a corner, and the runway for growth is still long and promising given below average per-capita-income and per-capita-household-expenditures. As those numbers head higher toward the developed economy average, Chinese consumers will want and need to travel more. Travel demand will go up. Ctrip's revenue growth will remain steadily north of 15%. Margins will trend higher with more complex travel packages. And CTRP stock will eventually hit new highs. All this stock needs is a turning point. It's tough to call a bottom in this stock since it has been a falling knife for almost two years. But, the stock double bottomed in late 2018 at $26, and the Chinese economy does appear to be improving. As such, if there were ever a time to call a bottom in CTRP stock, that time is now. As of this writing, Luke Lango was long AAPL, INTC, TCEHY, WB, JD, GOOG and BIDU. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Recession-Proof Stocks to Buy ... According to Goldman Sachs * 10 Triple-A Stocks to Buy in February * 7 Smart Money Opinions on Where Stocks Are Going Next Compare Brokers The post 7 Chinese Stocks to Buy Now appeared first on InvestorPlace.
If you glance at the one-year chart of Weibo (NASDAQ:WB) stock, you'll see that it has mostly trended downward. During this period, WB stock has gone from $140 to $53.50. And even though tech stocks have attracted many buyers so far in 2019, Weibo hasn't followed that trend. This week, WB stock has plunged by about 10%. The main cause of the weakness this week was a downgrade of WB stock by Nomura Instinet from "buy" to "neutral." Nomura, whose downgrade was very late, coming after the huge decline of WB stock, also cut its price target on Weibo stock from $74 to $64. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Hot Stocks to Buy Right Now It's true that WB does face some legitimate issues. U.S.-Chinese relations continue to be dicey, as there is buzz that the negotiations between the nations are going sideways. In the meantime, the Chinese economy is decelerating. In Q4, its gross domestic product (GDP) grew by 6.4%, which was the slowest increase in 28 years. This is despite the fact that the Chinese government, using methods such as tax cuts and easier monetary policies, has been ramping up its efforts to stimulate the economy. Yet despite all this, I still think the selloff of WB stock has been overdone. The fact is that the company has built a solid digital platform. It's essentially the Twitter (NYSE:TWTR) of China, but it's growing much more quickly than TWTR and has higher margins, giving WB stock an edge over Twitter stock. Consider Weibo's third-quarter results. The company's net revenues soared by 44% year-over-year to $460.2 million, and its net income jumped by 63% to $165.3 million. Moreover, WB continues to show strong user growth. In Q4, 70 million net monthly active users were added, pushing its total MAUs to 446 million. A key part of Weibo's success is that it has been laser-focused on its core competency: allowing people to discover and share news. As a result, WB has benefited from strengthening engagement trends and increased overall popularity. WB also has a strong balance sheet, as it has about $1.6 billion in the bank. One good example of WB's strategy is its investment in improving advanced recommendation algorithms, which enable it to promote much more relevant trending topics and content. Another factor that has strengthened WB is its strong video platform. In an effort to further enhance its video offerings, WB has been focusing on live broadcasting, which has become quite popular with its users. ### The Bottom Line on Weibo Stock Weibo will probably not be immune from the problems of the Chinese economy. Let's face it, when growth starts to slow down, the first area that companies look to spend less on is advertising. But Weibo stock still has a number of offsetting, positive catalysts. One such catalyst is the strong, continuous increase in the usage of digital platforms in China. In other words, companies will continue to spend more on internet ads, benefiting WB and, ultimately, WB stock. Secondly, the valuation of WB stock is certainly much more attractive now than it was six months ago, as its forward price-earnings multiple is now 17. It seems that a great deal of top-line pressure is already baked into WB stock at its current levels. What's more, Weibo stock is cheap compared to other Chinese internet companies like Alibaba (NYSE:BABA), whose forward price-earnings multiple is 23, and NetEase (NASDAQ:NTES), which has a forward price-earnings multiple of 30. Granted, Weibo stock will likely continue to be volatile. But for investors looking for an interesting play on China -- which has seen a steep drop in overall valuations -- WB stock looks like a good choice. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks to Buy Right Now * 7 Stocks That Have Big Headwinds In 2019 * 5 Terrific Tech Stocks That Will Make You Forget About FANG Compare Brokers The post Weibo Stock Looks Cheap appeared first on InvestorPlace.
Weibo stock is down on Tuesday after receiving a downgrade from Nomura analysts. Source: Shutterstock The downgrade for Weibo (NASDAQ:WB) has Nomura analysts giving the stock a new rating of "Neutral."This is bad news for Weibo stock as the previous rating from Nomura was "Buy." However, it doesn't stop there. To go along with the downgrade of Weibo stock, Nomura analysts also have a new price target for the stock. This new price target for WB stock is $64. That's a roughly 14% drop from Nomura's previous price target of $74 for WB stock, reports Motely Fool. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It's worth noting that Weibo stock was trading at $60.80 when the markets closed on Friday. This means that Nomura is still seeing some upside to the stock from its current price, but it is nowhere near the previous price target. Weibo stock has been on a rough ride over the last year. On the same day as today in 2018, WB stock was trading at $131.13 per share. That's more than double what the stock is currently trading at. The stock continued to decline throughout the year. This likely has to do with the trade war between the U.S. and China, which also hit many other Chinese stocks. * 7 Dark Horse Stocks You Really Need to Look at for 2019 So what is the overall view on Weibo stock from analysts? Currently, the stock has a consensus rating of "Hold." The consensus price target for the stock is sitting at $87.13. WB stock is down 11% as of Tuesday afternoon. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Growth Stocks for the Return of the Bull * The 10 Best Index Funds to Buy and Hold * 10 Lithium Stocks to Buy Despite the Market's Irrationality As of this writing, William White did not hold a position in any of the aforementioned securities. Compare Brokers The post WB News: Weibo Stock Tumbles on Nomura Downgrade appeared first on InvestorPlace.
NEW YORK, NY / ACCESSWIRE / January 17, 2019 / Despite concerns of a partial government shutdown, U.S. markets extended gains for the second consecutive session on Wednesday on strong earnings from Bank ...
Calling the past few months challenging ones for owners of Weibo (NASDAQ:WB) stock is a considerable understatement. They've been miserable. Weibo stock price has been more than cut in half since February's high, and while a broad rout of most high-profile Chinese stocks like Alibaba Group Holding (NYSE:BABA) and Baidu (NASDAQ:BIDU) was the driving force of the selloff, that's of little solace to owners of Weibo stock. Some green shoots are starting to push through for many Chinese names, however. And, with solid fundamentals already (or still) in place for the company, Weibo stock looks better positioned than any of its peers to lead the recovery effort. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks the Smart Money Is Piling Into But there's one huge technical hurdle ahead for WB stock that will make or break the budding rebound. ### What's Weibo? WB is often called the Twitter (NYSE:TWTR) of China, and though the characterization isn't off-base, it's not entirely complete. With more bells, whistles and opportunities to personalize user interfaces than Twitter, Weibo is also a great deal like Facebook (NASDAQ:FB). Arguably, Weibo is a hybrid of the Western world's two most popular social-networking sites. And, much like Facebook and Twitter, the young-ish platform is experiencing tremendous revenue and profit growth. Last quarter's top line grew 48% year-over-year, to $409 million, and its user base expanded by 19%. Both figures extended long-standing uptrends that analysts believe will persist for the foreseeable future. The upward revenue and earnings trajectory, however, have done little to prevent the decline of Weibo stock price. Blame nervous investors. More driven by presumption than facts at the time, investors feared that new tariffs imposed by President Trump on China would cause the country's already-fragile economy to outright implode. It did end up running into a headwind, but it turned out to be manageable. And Weibo, whose appeal has been enhanced by its relative newness, has been able to grow regardless of China's macro environment. Investors' misperceptions about China in general and Weibo stock in particular are beginning to be corrected. But WB stock needs one more good shove to kick off what should become a self-sustaining rally. That catalyst is well within reach. ### The Chart of WB Stock Price The chart of Weibo stock, at first glance, appears to be ugly. WB stock price peaked near $140 in February, and by October, it was trading near $53. Since then, however, subtle but important bullish clues have materialized. One of them is the development of a horizontal support level just above $53, which has led to the first higher lows in nearly a year. That horizontal floor has also allowed Weibo stock to punch through a pair of falling resistance lines that had pushed the shares lower for at least part of the multi-month setback. There's one more ceiling to clear, however, before the tide turns more in favor of the WB stock price than not. That is the 100-day moving average (depicted by the purple line on the chart below), which stamped out the breakout effort that emerged in early December. That thrust didn't start in the best of circumstances. At the time, the stock market was poised to embark on a major correction, and China's future was still in question. The majority of China's most familiar stocks were far from ready to recover, leaving Weibo at a major disadvantage. Never even mind the big gap left behind by an overheated, one-day gain of Weibo stock. Matters have changed dramatically since then, setting the stage for what could be a dramatic rebound rally of WB stock that may well lead other Chinese names out of similar funks. ### One Final Word on Weibo Stock While not overwhelmingly bearish towards WB stock, the financial advice and news industry hasn't exactly been fond of Weibo lately. Morgan Stanley downgraded WB stock on Tuesday, and though no scathing commentaries have been penned about the company in recent weeks, few have been bullish either. Take it all with a grain of salt. News coverage has been more reactive than proactive in recent weeks, with analysts and the media chasing trends rather than leading or causing them. To that end, if Weibo stock can just push past its technical hump, don't be surprised to then see the headlines about it take a decidedly more optimistic tone. That, of course, will fan any bullish flames if and when they materialize. Weibo stock just has to clear that 100-day moving average line first. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Weibo Stock Looks Poised to Lead a Rebound of Chinese Equities appeared first on InvestorPlace.
Looking at Weibo Corporation's (NASDAQ:WB) earnings update in September 2018, analyst consensus outlook appear cautiously optimistic, as a 26% increase in profits is expected in the upcoming year, though this Read More...
Alibaba (NYSE:BABA), like many Chinese and technology stocks, came under pressure in 2018, partly due to concerns about the trade war. And in the past few weeks, the strengthening U.S. dollar and reports of a potential cooling of the Chinese economy have added to the uncertainty surrounding BABA stock. Amid all of this pressure, BABA stock has tumbled 20% in the past year. However, since China's move to a consumption-based economy is here to stay, long-term investors may want to consider investing in Alibaba stock, especially as the company's earnings, due to be announced on Jan. 30, approach. I believe that the slowing down of the Chinese economy may become a blessing in disguise, as it may prevent a full recession and keep the growth of the country and its online retail sector at sustainable levels. ### The Fundamentals of BABA Stock Are Robust 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. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Morgan Stanley: 7 Risky Stocks to Sell Now As BABA gets ready to release its quarterly results at the end of the month, investors who are seeking capital appreciation should keep in mind the company's dominant position in the Chinese e-commerce space and the rapid growth of its e-commerce business. Moreover, BABA's gross margin is over 55%, and many analysts expect its revenue to continue growing at double-digit-percentage rates. 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 1.4. Although the Chinese economy may slow in 2019 or 2020, China's growing middle class will continue to drive increases in the country's consumer spending. The sales of China's online retail market, which is growing rapidly, are likely to expand particularly quickly. BABA also has multiple equity stakes in growth companies in other industries such as Alibaba Cloud, its cloud computing arm; Ant Financial, the Chinese payments giant; and Ele.me, the local delivery company. Alibaba owns 31% of Weibo (NASDAQ:WB), the Chinese microblogging company. Like Amazon (NASDAQ:AMZN), Alibaba is also paying considerable attention to developments in cloud computing and artificial intelligence, two areas that will contribute to its bottom line and help boost BABA stock in coming years. ### BABA's International Growth Is Just Beginning Furthermore, BABA has investments in start-ups in South Asia and Southeast Asia. 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 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. ### So 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. Yet, between now and Jan. 30, when BABA reports its earnings, the markets are likely to continue to be volatile, especially since many other tech heavyweights are expected to release their quarterly reports between now and then. After the recent selloff of BABA stock, followed by the recovery in the markets over the past week, the technicals of Alibaba suggest that BABA stock could continue to be choppy. Investors who pay attention to moving averages and oscillators should note that the short-term technicals of Alibaba stock are moving toward a more neutral reading from the extreme oversold levels we have recently seen. The volatility of Alibaba stock is high, giving it a wide trading range, so short-term traders should proceed with caution in the coming weeks. From a short-term-chart perspective, I am not willing to say that BABA stock has bottomed yet. However, the recent decline of the shares makes BABA stock even more attractive for long-term investors. I also believe that most of the negative 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. The past four trading sessions have given Wall Street a glimpse of how powerful BABA's comeback could be: the stock rallied from a low of $129.83 on Jan. 3 to a high of $153.35 on Jan 9. ### The Bottom Line on Alibaba Stock Alibaba's growth in e-commerce, cloud computing, and other investments throughout China and globally make it a disruptor and a strong, long-term investment. Long-term investors should view any further fall in the BABA stock price as an opportunity to buy the stock. However, traders with a short-term horizon should realize that BABA stock may not yet have formed a base and consequently may not yet be ready to bounce back fully from its recent lows. 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 * 10 Stocks You Can Set and Forget (Even In This Market) * 10 Virtual Assistants for the Future of Smart Homes * 7 5G Stocks to Buy as the Race for Spectrum Tightens Compare Brokers The post Domestic, Global Growth Will Propel Alibaba Stock Higher in the Long-Term appeared first on InvestorPlace.