4 Red Flags for Weibo's Future
Weibo (NASDAQ: WB), a Chinese social media company that is frequently compared to Twitter (NYSE: TWTR), might seem like an undervalued growth stock. Its microblogging platform served 573 million monthly active users (MAUs) last quarter, up 12% from a year ago, while its revenue rose 39% year-over-year in the first nine months of 2021.
Analysts expect Weibo's revenue and earnings to rise 33% and 29%, respectively, for the full year. It faces easy comparisons to its slower growth throughout the pandemic last year, but its stock looks cheap at just nine times forward earnings and about three times next year's sales. Unfortunately, four red flags indicate the stock could be a value trap.
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Source Fool.com
