What Weibo Doesn't Want Shareholders to Focus On

What Weibo Doesn't Want Shareholders to Focus On

Weibo's (NASDAQ: WB) business has delivered plenty of impressive growth statistics that help make the case for owning the stock. Last quarter saw the company's daily active users increase 26% year over year, while monthly active users were up 28%. These user additions, along with improved engagement and increased advertiser spending, helped push year-over-year sales and net income up 71% and 144%, respectively -- and Weibo shares have now gained nearly 140% year to date.

That's a performance worth celebrating, but with the company priced for stellar growth at roughly 60 times forward earnings estimates, it's also important to consider conditions that could disrupt the company's growth story. Read on for a look at a key risk factor that Weibo would prefer shareholders not to focus on.

Image source: Getty Images.

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Source: Fool.com