Morgan Stanley to maintain micro-blog Holdings watch-rating target price raised to 22 U.S. dollars

Beijing Time August 16 Noon news, Morgan Stanley published a study today, to maintain the micro-BO (NASDAQ:WB) Stock "wait-and-see" (Equal-weight) rating, and its target share price from 21.40 U.S. dollars to 22 U.S. dollars.

The following is a summary of the report:

Second-quarter losses narrowed: Weibo's second-quarter total revenue rose 105% to $77.3 million, up 3% from our forecasts and the company's guidance forecast (74 million to $76 million). NON-GAAP (non-US general accounting standards) net loss of 4.9 million U.S. dollars, a year ago, Non-gaap net loss of 11.2 million dollars narrowed, better than our 6.1 million U.S. dollars net loss expectations.

User growth health: As of June 30, the monthly active users grew 30%, to 156.5 million, daily active users grew 32% to 69.7 million. User participation (daily active users/monthly active users) reached about 45%, compared with the previous quarter and the same period last year, basically stable. In the second quarter of the fiscal year 2014, Weibo had 78% active users from mobile devices, up from 70% in the first quarter, largely because of cooperation with popular television programs that increased user participation and infiltration in less developed cities.

Advertising performance: Advertising and marketing revenue growth of 99% year-on-year, accounting for about 77% of total revenue. Excluding Alibaba (rolling information) should be accounted for part (22.2 million U.S. dollars), growth of 51%. In the second quarter, Weibo attracted 190 key customers and 9,300 SME clients, mainly FMCG, automotive and Internet service companies. Primary advertising revenue rose 5 times times year-on-year, the chain growth of 42% to 14.2 million U.S. dollars, offset the key customer brand advertising revenue growth slowed (up 4%, the chain growth of 6%, to 23.2 million U.S. dollars).

The growth in value-added services has been strong: value-added services have risen 131% per cent year-on-year, to 23% of total revenue, benefiting mainly from incremental revenue from data services (about 40% of the total value-added service income, which was 0 per cent last year). Game revenue (mainly PC side) grew 45% year-on-year, accounting for about 40% of total value-added services.

Enriching the user experience is still the top priority: in order to gain more users and increase user participation, Weibo will deepen its cooperation with distribution channels, strengthen the platform through new services, and integrate media content. To improve the product experience, the company will optimize the user's flow of information, according to Weibo. So far, these projects have covered about one-third of the day's active users and are expected to cover more users in the next few quarters. We adjusted the valuation model and raised the target stock price to $22 trillion. (Ding Macro)