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Shares of Chinese social media companyWeibo Corp(NASDAQ: WB)are taking a turn for the worse Thursday, down 13% as of 11 a.m. EST. Fourth-quarter and full-year 2016 earnings were announced after the market closed Wednesday and were, by most accounts, exceptional, but not quite as great as the market was hoping for.
Weibo actually reported a very solid and high-growth quarter and year. Sales in the fourth quarter and full year grew 43% and 37%, respectively, year over year. Net income for the year increased more than 200% over 2015, and monthly active users is now at 313 million, up 33% over December 2015. And yet, that seems to be shy of what the market was hoping for, which has led to Thursday's sell off.
Image source: Getty Images.
Weibo's main feature is its short-form pubic messages, similar to Twitter, but the platform has also done a great job with news, video, and live-broadcasts.Part of what makes Weibo so attractive is that its addressable market in China alone is so massive. China's massive population of 1.4 billion has only about 50% internet penetration, but that number is growing quickly as mobile phones make internet usage much more widely available to people across the country that might not otherwise use a personal computer.
Even after Thursday's sell-off, Weibo's stock is still up more than 236% over the last year. With only about a quarter of China's population currently using the platform, and with the ability to expand further abroad, Weibo could still have plenty of growth left.
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