Weibo Corporation: Fans Economy and KOLs Drive Better Growth; 3Q16 Revenue Guidance in USD May Be Impacted by RMB Depreciation; Maintain Buy Rating

  • Date: Aug 04, 2016
  • Industry:Social Media
  • Company:WB
  • Partial Report:Name: WB 2Q16 Preview 08042016_FC.pdf - Size: 0.49M - Free Download
  • Weibo Corporation: Fans Economy and KOLs Drive Better Growth; 3Q16 Revenue Guidance in USD May Be Impacted by RMB Depreciation; Maintain Buy Rating

Weibo will report 2Q16 results on Monday, August 8 after the market closes followed by a 9pm EST conference call. We are expecting Weibo to report 2Q revenue better than consensus driven by the growth of fans, KOLs as well as traffic.For 3Q16, we expect WB to continue its growth momentum of around 31% Y/Y in RMB terms but in absolute USD terms, the guidance may be lower than current unadjusted consensus at $163.7M due to significant currency depreciation.However, we do not believe the currency issue is new to the market.Fundamentally, we believe Weibo is well positioned to capture the rapid growth in social media enabled fans economy. Therefore, we maintain our BUY rating on the stock and raise our PT to $38.00 from $21.00.

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