Stock (Symbol) |
Weibo (WB) |
Stock Price |
$120 |
Sector |
| Technology |
Data is as of |
| January 11, 2018 |
Expected to Report |
| Mar 20 |
Company Description |
 Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. Source: Thomson Financial |
Sharek’s Take |
 Weibo (WB) continues to have stellar fundamentals — the best of any stock I follow. Weibo is perhaps the top news and entertainment social media platform in China with companies, government portals, brands as well as actors and actresses providing content on the platform. WB’s numbers look perfect, with the company delivering triple-digit profit growth, beating the street, and upping estimates. Key accounts (large brand advertisers) grew 69% with KA revenue up 71%. Below is WB’s performance the last 5 qtrs, with profit growth, what estimates for that qtr used to be 4 qtrs earlier, followed by 2017, 2018 and 2019 profit estimates:
Weibo is making easier creation and consumption of short videos a top priority for management this year — and it’s paying off in spades. Daily video views grew 175% in September. Weibo also has a revenue sharing agreement with Yizhibo, a top live-streaming app. Live-streaming is huge in China, with half the people on the web using a live-streaming app. Weibo users can view Yizhibo live streams and videos, interact with broadcasters and send virtual gifts. Although WB is up from $21 to $120 since I first purchased it in April 2016, the stock still has massive upside. My 2018 Fair Value is $177 and 2019’s is $252. Keep in mind profit estimates have been soaring, and if that continues I will likely up my Fair Values as well. |
One Year Chart |
 Last qtr Weibo delivered 81% sales growth, with mobile ad revenue up 85%. Profits surged 113% and blew past estimates of 88%. Qtrly Estimates for the next 4 qtrs are 71%, 85%, 63% and 45% and have been rising. The Est. LTG just increased from 54% to 66% which is outstanding, and the P/E just fell from 61 to 44 as I’m not looking ahead to 2018 profit estimates. |
Fair Value |
 My Fair Value on WB goes up from 60x earnings to 65x. What’s amazing is this stock has surged from $21 to $120 in less than two years and still has enormous upside. My 2018 Fair Value rises from $152 last qtr to $177 this qtr. |
Bottom Line |
 Weibo is a top tier growth stock, as this chart shows. Although WB’s climb has been rapid, the P/E of 44 is quite reasonable for a triple-digit grower. Videos and live-streaming are current drivers for this social platform, with live broadcasting set to expand exponentially. Fundamentally WB is the best stock I follow, and ranks 1st in the Growth Portfolio and Aggressive Growth Portfolio Power Rankings going into 2018. |
Power Rankings |
Growth Stock Portfolio
1 of 39Aggressive Growth Portfolio 1 of 16Conservative Stock Portfolio N/A |
