Shares of Weibo Corp. (NASDAQ: WB), the Chinese microblogging platform, saw a pre-market surge of 5.05% on September 30th, driven by positive analyst sentiment and expectations of a rebound in advertising revenue.
Citi analyst Alicia Yap maintained a "Buy" rating on Weibo and raised her price target to $12.00, citing anticipated growth in the company's advertising business. Yap believes that recent monetary and fiscal policy measures in China could spur a recovery in the economy, boosting consumer spending and advertising demand.
The optimistic analyst outlook follows Weibo's efforts to diversify its revenue streams and enhance user engagement. As the Chinese economy gradually recovers, investors are anticipating a resurgence in Weibo's core advertising segment, which has been impacted by the pandemic-induced economic downturn.
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