Why Weibo Stock Fell 18% Today
Shares of Weibo (NASDAQ: WB) crashed hard on Thursday, falling as much as 18.1% in early trading. The social network operator, often called the Twitter of China, reported solid third-quarter results early in the morning, but the company also set its fourth-quarter revenue guidance far below the current Street view. Weibo's stock had recovered slightly to a 15.5% drop at 11:20 a.m. EST.
Weibo's third-quarter sales rose 2% year over year to $468 million, in line with consensus analyst estimates. The core category of advertising sales increased by a minuscule 1% while value-added services posted a 9% revenue increase. That bump rested chiefly on the acquisition of a live video-streaming service that closed in the fourth quarter of 2018.
Adjusted earnings rose by 3%, landing at $0.77 per share. Here, your average analyst would have settled for $0.73 per share.
Source Fool.com
