Shares of Weibo Corp (ADR) (NASDAQ:WB) fell more than 7% on Friday, as the stock hovered around $19.90 level. The stock is up about 17% since its IPO in April, during which it sold $286 million worth of shares. Bloomberg’s David Ingles took a look at the company after its second-quarter earnings, which showed greater improvement compared to a year ago.
Weibo Corp (ADR) (NASDAQ:WB), which is controlled by SINA Corp (NASDAQ:SINA), reported second-quarter net loss of $15.4 million, far better than $35.1 million in the like quarter last year. The company also saw its sales double for the latest reported quarter. The CEO, Wang Gaofei, said using mobile partnerships to gain users supported the 32% growth in active users.
Weighing in on the stock, Ingles noted that the results were fairly good, citing the much smaller loss than last year and how the company has been able to reduce its financial bleeding. He also said that more users lead to better revenue, and that was evident in the latest quarter.
“The stock has fallen substantially, but now you look at this latest set of results, and they are fairly good. You look at the net loss it is actually much, much smaller compared with the loss we saw a year ago. From $35 million we went to $15 million. So they were able to stop or at least lessen the bleeding fairly quickly […],” said Ingles.
Ingles said that rebounding in traffic bodes well for the stock of Weibo Corp (ADR) (NASDAQ:WB) and added that about 70 million more active users gained in the quarter is a good sign. He also noted the competition that the company faces from the likes of WeChat, in the acquisition of users.
Ingles said Weibo Corp (ADR) (NASDAQ:WB) has provided a positive guidance for the current quarter expecting revenue in the range of $79 to $80 million.