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- 25 May 2019
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There is an absolute slaughter-fest in China's stock market at the moment!
A stock that has been hit extra hard is Weibo (WB:NASDAQ). Not only has it been sold off because of fears of the entire Chinese market slowing down, but after Baidu (BIDU) reported disappointing numbers, all internet stocks in China got immediately sold off the day following.
Having said this, Weibo is a strong and healthy company growing at a ~20% clip. They have >500 million MAUs and >200 million DAUs. Popularly known as the Twitter of China, if we dig deeper, we'll realize that it's much much more; furthermore, >93% of their user base are mobile users - mobile digital ad spending in China is forecasted to grow exponentially - it'll also become the dominant form of digital advertising by 2020.
I've put together a ~20 minute video analysis on why I believe Weibo is undervalued:
Thoughts and feedback welcome! Disclosure, I'm looking to initiate a position <$40 and see it potentially going as low as $30 or even $25 if the trade war persists.
A stock that has been hit extra hard is Weibo (WB:NASDAQ). Not only has it been sold off because of fears of the entire Chinese market slowing down, but after Baidu (BIDU) reported disappointing numbers, all internet stocks in China got immediately sold off the day following.
Having said this, Weibo is a strong and healthy company growing at a ~20% clip. They have >500 million MAUs and >200 million DAUs. Popularly known as the Twitter of China, if we dig deeper, we'll realize that it's much much more; furthermore, >93% of their user base are mobile users - mobile digital ad spending in China is forecasted to grow exponentially - it'll also become the dominant form of digital advertising by 2020.
I've put together a ~20 minute video analysis on why I believe Weibo is undervalued:
Thoughts and feedback welcome! Disclosure, I'm looking to initiate a position <$40 and see it potentially going as low as $30 or even $25 if the trade war persists.