China-based Weibo (WB) reported second-quarter earnings before the market open Wednesday that edged past analyst estimates. Weibo stock initially jumped on the news but gave back its gains and lost ground by the close.
Weibo, a social media company with a website comparable to Twitter (TWTR), reported revenue of $426.6 million. That was virtually in line with the consensus estimate of $427 million. It reported adjusted earnings of 68 cents per share, beating analyst forecasts for 67 cents.
Monthly active users grew by a net addition 70 million year over year to reach 431 million in June 2018. Average daily active users had a net addition of 31 million year over year and reached 190 million.
Forecast Below Views
For the third quarter, Weibo sees net revenue of $465 million-$475 million, below views for $499 million.
Weibo shares jumped nearly 6% during premarket trading on the stock market today, but then the stock gave back those gains. Weibo shares fell 4.1% to close at 80.09. Weibo stock is well off record highs set in the first quarter.
Sina (SINA) , which operates a popular China internet portal, owns a majority stake in Weibo. Sina also reported strong quarterly earnings Wednesday morning that topped estimates. but shares reversed an upward trend. Sina shares tumbled 7% to finish at 74.88.
The post Weibo Stock Wavers Despite Earnings Beat, Growing User Base appeared first on Investor's Business Daily.
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