Why Weibo Stock Fell, Then Jumped, on Thursday
Weibo (NASDAQ: WB) shareholders had a volatile trading day on Thursday as the stock fell as much as 12% in early trading before jumping back into positive territory by 1 p.m. ET. The wider market declined 0.6% in that time.
The Chinese social media specialist remains in deeply negative territory for the year, with the stock down about 50% so far in 2022. Thursday's moves came as investors reacted to the company's third-quarter earnings report, which showed significant sales declines.
Revenue fell 20% through late September, in fact, after accounting for currency exchange rate shifts. Weibo struggled with a weaker advertising market, just as larger peers like Meta Platforms have noted. But user growth continued thanks to the addition of 11 million users year over year, to push Weibo's total base to 584 million.
Source Fool.com
