Weibo hit an all-time at $139.74 in February before falling off its peak and has dropped more than 50% from its peak. Weibo’s pullback has presented long-term investors a unique opportunity. Escalating trade tensions between the U.S. and China are the main cause for the sell off. However, these fears are way overblown since Weibo is quite well-insulated from these tensions.
Weibo (NASDAQ:WB) is one of the largest social media platforms in China. Weibo has always been known as the “Twitter of China”. However, that nickname doesn’t do Weibo any justice. It is an integrated social media platform that offers way more than that. Weibo began as a microblogging site similar to Twitter (NYSE:TWTR). However, in a much shorter space of time, the usage of Weibo in China has far surpassed that of Twitter in the US, and growth is still accelerating.
Weibo’s powerful network effect plus its continued user growth and user engagements as well as the wide range of ad offerings have solidified Weibo as an essential element of mobile marketing in China further strengthens Weibo’s leading position in the social media industry…. … Read the rest