Days Hao Capital issued a report today to give micro-Bo stock buy initial rating

Summary: View the latest quotes Beijing time September 9 Evening News, investment company Days Hao Capital (t.h.capital) issued a report today, to give micro-Bo shares (NASDAQ:WB) to buy the initial rating, the target price set to 24 U.S. dollars. The following is a summary of the contents of the report: we give the latest quotes

Beijing Time September 9 Evening News, investment company Days Hao Capital (t.h.capital) issued a report today, to give micro-bo stock (NASDAQ:WB) "buy" initial rating, the target price set to 24 U.S. dollars.

The following is a summary of the contents of the report:

We give Weibo stock "buy" initial rating. We believe that, based on Weibo's revenue and profitability potential, its share price is currently undervalued. Some investors are concerned about the profitability of microblogs, mainly because of two issues: 1 user growth slows, activity declines, and 2 commercial models are limited. We believe, however, that these two issues are now being resolved. In particular, the potential for revenue will soon be highlighted. Because we gave the microblog stock a "buy" initial rating and set the target price at $24.

Investment drives user growth and interaction: Since the second half of 2013, the growth and activity of microblogging users has declined. In the fourth quarter of last year, the growth of active users in micro-blogs slowed to 36%, while the third-quarter growth rate was 43%, the second quarter was 48%, and the first quarter was 65%. We believe that there are two main reasons for the slowdown: 1 The rapid popularity of Tencent's micro-letters attracted users ' time; 2. The Chinese government's clean-up operations led to the closure of some big V users. But we think the slowdown is manageable, as the number of micro-credit users has reached a certain scale, and Weibo has increased marketing efforts. Our data show that Weibo's user growth and activity has started to rebound. The rebound in user growth can be a glimpse of the fast micro-blogging mobile downloads, as of August 12, when the number of mobile downloads has reached 1.6 billion, up 84% from the start of the year. In the second quarter of this year, each popular microblogging average interaction 32,000 times, higher than the first quarter of 28,000 times, the chain growth of 14%. The average interaction of Weibo was promoted 104,000 times, up 8% from 96,000 times in the first quarter. This trend was also maintained in July and August.

Development of a new model of microblogging commercialization: Weibo started commercialization in the second quarter of 2012, and the progress was not particularly smooth. We believe that the main reason is the lack of market reference. But now, Weibo has made breakthroughs in this area, such as: 1 increase the interaction between TV and Weibo, 2 to open Twitter to the core account, and 3 to commercialize specific microblogging content. We believe that these measures have yielded initial results.

Valuation: We give the Weibo stock a "buy" initial rating and set the target price at $24. (Li Ming)