Goldman Sachs maintains Weibo bid rating of 24 dollars

Beijing Time May 22 Evening News, Goldman Sachs today issued an investment report to maintain the NASDAQ:WB "buy" rating, while maintaining a 24 dollar target share price unchanged.

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

First quarter results: Revenue for 67.5 million U.S. dollars, an increase of 161%, consistent with our expectations. Based on non-US GAAP, the loss of $0.03 per share is consistent with our expectations. Weibo expects revenue for the second quarter to reach $74 million trillion to $76 million, with median growth of 99% per cent year-on-year, consistent with our expectations.

Analysis：

In the first quarter, microblogging user interaction significantly improved. The number of active users was 143.8 million, an increase of 34%, of which 70% were mobile users. The number of active users was 66.6 million, an increase of 37%. The total content (feed) number exceeded 3.1 billion, and last December was 2.8 billion, which meant that users and content partners were active.

In addition, the positive flow trend also benefited from the micro-Bo product strategy adjustment, especially content creation. The microblogging platform highlights the discovery feature, connecting users to professional publishers. In addition, users are allowed to publish long content.

Management has also specifically referred to lower-level cities, saying that Weibo has improved the mobile interface and improved ease of use, helping to improve the interaction of users in lower-tier cities. Weibo also plans to set up marketing teams in these cities to collaborate with local media, such as television.

As for microblogging advertising platform fans, since the launch in the second quarter of 2013, revenue reached 28 million U.S. dollars. In the first quarter of this year, fans accounted for 19% of Weibo's advertising revenue. The company also plans to launch a self-service platform for big brands in the second quarter, Management said.

Valuation: We continue to maintain the "buy" rating of Weibo shares while maintaining a 24 dollar target share price unchanged.