Shares of Weibo Corp. (NASDAQ: WB), China's leading social media platform, surged 9.59% on September 30th, closing at $XX.XX per share. The stock rally was driven by positive analyst sentiment and expectations of a rebound in the company's advertising business as China's economy shows signs of recovery.
Citi analyst Alicia Yap initiated a "90-day positive catalyst watch" on Weibo, maintaining a "Buy" rating and raising her price target to $12.00. Yap cited anticipated growth in Weibo's advertising segment, fueled by recent monetary and fiscal policy measures in China aimed at spurring consumer spending and advertising demand.
The optimistic outlook from analysts comes as Weibo has been actively diversifying its revenue streams and enhancing user engagement to mitigate the impact of the pandemic-induced economic downturn. With China's gradual economic revival, investors are betting on a resurgence in Weibo's core advertising business, which has been a key revenue driver for the microblogging platform.
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