by Ian Harvey
November 09, 2017
Weibo Corp (ADR) (NASDAQ:WB)
Here is an overview of Weibo Corp (ADR) (NASDAQ:WB) winning options call trade after reporting earnings. This options trade was recommended, as a consideration, on Monday, November 06, 2017 -- in the article “Earnings Predictions for the Week Beginning November 06, 2017”-- producing great profits of 231% within a few days of executing the trade!
Weibo Corp (ADR) (NASDAQ:WB) -- will report after the market closes. The consensus on Weibo, known as the Twitter (TWTR) of China, is for EPS of 46 cents, up 92%, on revenue of $300 million, up 69%.
Shares have nearly doubled since April, and trade at almost 37x Street EPS estimates for 2018. But there's obviously great growth potential here: analysts are projecting 88% EPS growth and a 60%+ increase in revenue. Meanwhile, WB shares actually have pulled back a bit heading into the report, falling about 12% from all-time highs reached in September. That should keep expectations moderate and provide some room for gains off an earnings beat.
Investor sentiment going into the company's earnings release has 76% expecting an earnings beat. Short interest has decreased by 21.5% since the company's last earnings release. Overall earnings estimates have been revised higher since the company's last earnings release.
** Option trade to consider: Buy the WB NOV 17 2017 100.000 CALL at approximately $2.75.
China-based social network operator Weibo celebrated a "virtuous cycle of growth" as the company delivered strong growth in many important business metrics, with revenue and non-GAAP net profit exceeding consensus estimates by 7 percent and 9 percent, respectively.
Weibo added 79 million net new accounts compared to the year-ago period, landing at 376 million monthly active users. Ninety-six percent of the platform's users accessed it through mobile devices in September.
Management's revenue guidance for the third quarter topped out at $300 million, a bar Weibo cleared with plenty of margin.
A "Weibo Light" platform was released in the third quarter, intended to give Chinese users with slower or less reliable internet connection a better social network experience.
For the fourth quarter, Weibo expects net revenue of roughly $360million, up from $213 million a year earlier.
"We have made a number of breakthroughs in the areas of expanding ad customer base, improving ad system efficiency as well as developing innovative marketing solutions," said CEO Gaofei Wang in a prepared statement. "I'm happy to see that we are increasingly creating a virtuous cycle of growth on Weibo by translating user base expansion and engagement growth into stronger monetization capabilities."
Weibo is exploring a larger portfolio of video-based content and advertising for the future, hoping to drive those user engagement numbers even higher. The company is also busy working up partnerships with Chinese smartphone makers, mobile networks, and ad partners in order to put the Weibo platform in the hands of more users.
Weibo stock has been on a tear since the beginning of 2017 and has more than doubled in the year-to-date period, with 115.8 percent in gains. Since the start of the third quarter, the gain is an even more staggering 244.9 percent, although the stock has seen a slight pullback since the start of September.
At the time of the recommendation, Monday morning, WB stock price was sitting at $96.41.
Tuesday saw the stock price hit a low of $93.95 before recovering to end Wednesday at $108.97, up $ $9.69 or 9.76%.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 231% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……