Why Weibo Stock Popped Today
Shares of Chinese microblogging platform Weibo (NASDAQ: WB) climbed 10.3% on Monday despite a lack of company-specific news. Rather, the most likely culprit for today's pop appears to be optimism surrounding the impending signing of the first phase of a U.S.-China trade deal later this week. In particular, President Trump signaled over the weekend that the deal could be signed "shortly" after Jan. 15 -- though nothing is set in stone, as Chinese officials have yet to confirm as much.
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Much like other volatile China stocks, Weibo has proven sensitive to macroeconomic strife as it pertains to the headwinds facing its core advertising revenue stream. Recall that in November, Weibo shares plunged 18% in a single day after the company not only said it achieved a modest 1% increase in third-quarter advertising sales, but also issued admittedly conservative guidance for the fourth quarter.
Source Fool.com
