Why Weibo Shares Dropped 13% Last Month
Shares of Weibo (NASDAQ: WB) fell 13% in November, according to data from S&P Global Market Intelligence. The provider of Chinese microblogging services got off to a good start and the stock rose as much as 12.8% above October's closing prices by Nov. 8, but then the company posted a solid third-quarter earnings report with a side of weak fourth-quarter guidance. Shares fell as much as 18% that day alone, setting a negative tone for the rest of November.
Weibo's third-quarter sales rose 1.7% year over year to $468 million. Adjusted earnings increased by 2.7% to $0.77 per diluted share. The analyst consensus had called for earnings near $0.73 per share on sales in the neighborhood of $468 million.
Looking ahead, Weibo's management said fourth-quarter revenue would grow roughly 1.5% year over year in constant currencies. That's far below the 7.5% annual growth rate your average analyst had been projecting at the time.
Source Fool.com
