Weibo's Profitability Likely to be Weighed by Planned Video, AI Boost
Dow Jones
Aug 21
0458 GMT - Weibo's 2H and 2027 profitability will likely be weighed by investment in artificial intelligence, say Citi analysts in a note. While the Chinese social-media company's 2Q results were better than Citi expected, its management flagged challenges including a shift in advertising preference toward higher return-on-investment formats, the analysts say. Weibo is boosting its video-content strategy and allocating more resources to AI to drive long-term user engagement, they add, noting the movesappear strategically sound but could pressure profitability, they add. Citi cuts its rating to neutral from buy and trims its ADR target price to $7.80 from $9.30. ADRs last closed 4.0% lower at $7.19.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.