Just throwing this into the ring. Essentially, its a sort of Facebook/Twitter hybrid in China, growing monthly active users at about a 30-35% clip (whereas Twitter has stalled out), and has found a way to be profitable.
1 year PEG at 0.35 if I calculated correctly.
last 8 quarters earnings:
Most recent —> less recent
0.16
0.07
0.32
0.10
0.05
0.01
0.04
-0.01
I cant find a good reason for the 0.32 rise 3 quarters ago.
Thoughts?
I hate to be cynical and Weibo may be a great investment but it’s a Chinese company and who knows about the accounting and the books. I’ve been burned badly in the past and there are so many other great opportunities out there.
David
My wife is Chinese and a committed user of Weibo. I use WeChat (the Americanized version) to exchange messages/photos/etc with her. It’s a good, popular platform. My wife can video chat with friends in China without concern of burning her usage quota.
That’s all good and fine, but beware Chinese accounting. Sometime ago I promised Saul (in an off-board exchange) that I would provide a write-up on my impressions of trading in China and the implications for trading Chinese ADRs. I never followed through. Maybe I’ll get motivated and write it up.