Why Weibo Is Plunging Again Today
As of 2:30 p.m. EDT today, Weibo (NASDAQ: WB) stock was down 7.9% to $46.76 apiece. Shares have lost 23% of their value in the past month. Earlier today, Chinese financial regulators proposed legislation specifically aimed at curbing the growth of tech monopolies. Among many things, it tightens the grip on platforms harvesting user data for marketing purposes -- which could deal a serious blow to their advertising revenue.
Weibo is one of the monopolies that will be directly affected by the proposal. During its latest update in the first quarter, the company disclosed that it had 530 million monthly active users on its platform. In addition, the vast majority of its revenue, about $453.5 million out of $513.4 million in Q4 2020, came from advertising.
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Source Fool.com
